Effects of Pre-Salt Regulation on the Market Value of Petrobras

This article measures the impacts of the process of pre-salt development related to new regulations in Brazil applicable to the offshore pre-salt hydrocarbon reserves. For this purpose, Bai and Perron ( 2003 ) and Chow ( 1960 ) tests were used to identify structural breakpoints in the behavior of th...

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Bibliographic Details
Published in:	Latin American business review (Binghamton, N.Y.) Vol. 18; no. 1; pp. 47 - 67
Main Authors:	Fortunato, Graziela, Teixeira, Arilton, de Mello, Cláudio Bezerra
Format:	Journal Article
Language:	English
Published:	Abingdon Routledge 02-01-2017 Taylor & Francis Ltd
Subjects:	Brazil Market value Oil regulation Petrobras stock prices Petroleos Brasileiro SA Petroleum industry pre-salt reserves Regulation Stock prices structural break
Online Access:	Get full text
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Summary:	This article measures the impacts of the process of pre-salt development related to new regulations in Brazil applicable to the offshore pre-salt hydrocarbon reserves. For this purpose, Bai and Perron ( 2003 ) and Chow ( 1960 ) tests were used to identify structural breakpoints in the behavior of the price of Petrobras stock through a model that includes the ratio of the stock prices of Vale and Petrobras, and the proven oil reserves of Petrobras from 2000 to 2014. The results indicated structural breakpoints in the period of regulation change and when Petrobras issued new shares to raise funds for pre-salt development.
Bibliography:	ObjectType-Article-1 SourceType-Scholarly Journals-1 ObjectType-Feature-2 content type line 23
ISSN:	1097-8526 1528-6932
DOI:	10.1080/10978526.2016.1251823