StudentShare solutions
Triangle menu

: Event Studies and Abnormal Returns - Literature review Example

Extract of sample
: 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). ...
This is how an event study figures out that how much close the company is to raise its demand on its share holders and what is the right time to publicize such an event. An event study determines the overall effect of an event with respect to its constraints and dimensions (Kritzman, 2003). Once the impact is determined, the strategists are able to adjust changes on its constraints to see how effectively such an event can be applied. For example an event study of an announced merger would be to see the impact of the merger on the two firms’ values collectively. The study will elaborate that whether the merger is beneficial for both firms or not, which is assessed with respect to market requirements and past financial statistics (Kritzman, 2003). According to Mitchell and Netter (1994), an event study is a statistical assessment technique which finds out the influence of mergers, changing interest rates, dividend announcements on the company’s shares on the stock exchange (Bhagat & Romano, 2001). There are two types of information which firms reveal in the form of events, one is the information which relates to firm’s under questioning (announcement of dividends) and second is information which influence the market shares of the company like changing interest rates (Bhagat & Romano, 2001). Abnormal Returns Abnormal returns are returns on investment, which are beyond or less than the expected returns. Abnormal returns can be negative or positive depending on how much actual return are obtained. Abnormal return is the difference between actual returns and expected returns respectively, giving a negative or positive value of a return. From traders’ point of view, ...Show more


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…
Author : ibreitenberg
Literature Review: Event Studies and Abnormal Returns essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the literature review on your topic
"Literature Review: Event Studies and Abnormal Returns"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Literature review
There may also be cases of dismissals, resignations and retirements that will all call for the need to recruit and employ new workers. Even though recruitment and selection are one of the very usual and inevitable corporate practices, it is very important to attend to them with great caution and in by following good recruitment and selection processes that would ensure the company does not suffer the consequences of poor recruitment.
12 pages (3000 words) Literature review
Literature review
Hence, in this regard, both the private and the public sector have devoted considerable attention to the notion of customer satisfaction, which is a rudimentary basic in the customer-company relationship. Naturally, in order to increase the awareness about this concept, administrators have increasingly encouraged their staff to gain knowledge by studying and researching on this phenomenon of customer satisfaction for the welfare and growth of the organization.
10 pages (2500 words) Literature review
Literature review
Over the years, the landscape and the modus operandi of the business organizations have changed. This change has affected the job descriptions of the managers also. Now, managers are not treated as just employees with power; rather, they are treated as entrepreneurs with responsibilities.
4 pages (1000 words) Literature review
Literature Review
Generally speaking, online businesses provide a number of considerable benefits to business owners, as well as to customers. Online retailers are able to increase customer trust through efficient response and better customer relationship management (Hoffman, Novak & Peralta 1999, p.
5 pages (1250 words) Literature review
Literature review
In China, there are many types of informal financers such as, Rotating Savings and Credit Associations (lending cooperatives formed by members of the society) like, bahui, hehui and yaohui, private lending individuals, lending enterprises and pawn brokers, who extend credit in exchange of non-traditional collaterals such as, jewellery and personal belongings.
8 pages (2000 words) Literature review
Literature review
Rather they are treated as entrepreneur’s wit responsibilities. The management as well as the juniors or subordinates look up to the mangers as leaders. The managers are not only expected to perform their tasks but also are
4 pages (1000 words) Literature review
Literature review
While most of the people in the world interact and relate freely in accordance with universally acceptable principles, the case scenario in China is different. They highly regard the “Concentrical guanxi circles” (Lee
4 pages (1000 words) Literature review
Literature review
These steps and rules were as highlighted as follows. That seems obvious enough, but a lot of people take it personally when they don’t hear back from someone right away. Resist the urge to get upset or mad, and never
2 pages (500 words) Literature review
Literature review
108). The sections that are in this review focus on the topic “induction in management and mainly concentrate on a variety of management approaches and leadership styles that are defined by two
7 pages (1750 words) Literature review
Literature review
In summary, the article examines how the issues of multiculturalism in Britain have affected the political thinking in the country. The author bases his arguments on a pivotal moment that
2 pages (500 words) Literature review
Hire a pro to write
a paper under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
Comments (0)
Click to create a comment
Contact Us