The word event is very common in our life but in the world of investment, the event played an important role on the performance of companies.It can be announcement of dividend, impose of taxes by the Government, political uncertainty etc.That’s the reason Analyst do a deep analysis of these events to check the performance of stock and try to gain abnormal returns from their investment.
We try to compute the impact of any event on our stock returns through event study. It can be event related to economics or other than economic variable.
E.g. Impact of one variable on another variable.
For further illustration, let’s take few more examples.
- To what extent Monetary Policy impact on Banking Sector Returns.
- Is there any effect of Remittance’s on Countries GDP.
- Impact of Eid on Karachi stock Exchange
You can share your opinion regarding Event study, it’s pro’s and con’s and much more on below comment box. Thanks!