THE NESTLE CRASH

Authors
LODERER C JACOBS A
Citation
C. Loderer et A. Jacobs, THE NESTLE CRASH, Journal of financial economics, 37(3), 1995, pp. 315-339
Citations number
33
Categorie Soggetti
Economics,"Business Finance
Journal title
Journal of financial economics → ACNP
ISSN journal
0304405X
Volume
37
Issue
3
Year of publication
1995
Pages
315 - 339
Database
ISI
SICI code
0304-405X(1995)37:3<315:TNC>2.0.ZU;2-V
Abstract
On November 17, 1988, the board of directors of Nestle AG decided to a llow foreign investors to hold Nestle registered stock, reversing a lo ngstanding practice. This decision had a tremendous impact on the pric es of the firm's three classes of common stock, as well as on the pric es of several other corporations traded on the Zurich stock exchange. These price changes can be explained by the hypothesis that demand cur ves slope down.