Effects of Pre-Salt Regulation on the Market Value of Petrobras |
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| Authors: | Graziela Fortunato Arilton Teixeira Cláudio Bezerra de Mello |
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| Affiliation: | 1. Department of Business Administration, Pontifical Catholic University, Rio de Janeiro/IAG, Brazil;2. Department of Economics, IBMEC, Belo Horizonte, Brazil;3. Department of Business Administration, FUCAPE Business School, Vitória, Brazil |
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| Abstract: | 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 Bai, J., and Perron, P. (2003). Computation and analysis of multiple structural change models. Journal of Applied Econometrics, 18, 1–22. doi:10.1002/jae.659[Crossref], [Web of Science ®] , [Google Scholar]) and Chow (1960 Chow, G. C. (1960). Tests of equality between sets of coefficients in two linear regressions. Econometrica, 28(3), 591–605. doi:10.2307/1910133[Crossref], [Web of Science ®] , [Google Scholar]) 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. |
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| Keywords: | Oil regulation Petrobras stock prices pre-salt reserves structural break |
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