Coups, Corporations, and Classified Information
Arindrajit Dube, Ethan Kaplan and Suresh Naidu ,
( 126 )
Quarterly Journal of Economics
coups.pdf349.52 KB

We estimate the impact of coups and top-secret coup authorizations on asset prices of partially nationalized multinational companies that stood to benefit from U.S.-backed coups. Stock returns of highly exposed firms reacted to coup authorizations classified as top-secret. The average cumulative abnormal return to a coup authorization was 9% over 4 days for a fully nationalized company, rising to more than 13% over 16 days. Precoup authorizations accounted for a larger share of stock price increases than the actual coup events themselves.

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