: Event Studies and Abnormal Returns - Literature review Example

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: Event Studies and Abnormal Returns

This is how stock exchanges role and so as the financial advisors of big multinationals, who see events to be clusters of time or moments. This study will give an analytical review on the relationship of event studies and abnormal returns, projected in the past empirical studies of different companies. How event studies are carried out to generate abnormal returns and what is the role of abnormal returns in creating firms value, will also be elaborated in this study (Getz, 2012). Event An event is a reflection of time or moment projecting a situation where stocks raise or drop, and investors invest or back off (Kritzman, 2003). From marketing or finance perspective, an event is certainly a moment where traders meet traders in order to create a glimpse on the entire stock section. This is to bring investors close to the sellers, in order to generate demand of shares of a particular company. Events could be a merger between two companies to allocate the demand on the stocks list. Events are respective dates or moments in which announcements of mergers are to be made. These are settled to give hype to investors and share holders of the company, which in an overall way raise the demand constraint for the company’s products and services (Kritzman, 2003). ...
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Literature Review: Event Studies and Abnormal Returns [Instructor Name] Literature Review Introduction There have been many problems associated with traders on stocks at the time of real investment or business. Event studies are thought to be influential for abnormal returns…
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