Event Study

Stock Returns, Aggregate Earnings Surprises, and BehavioralFinance ArXiv ID: ssrn-380127 “View on arXiv” Authors: Unknown Abstract We study the stock market reaction to aggregate earnings news. Previous research shows that, for individual firms, stock prices react positively to earnings ne Keywords: Stock Market Reaction, Aggregate Earnings News, Event Study, Market Efficiency, Information Asymmetry, Equities Complexity vs Empirical Score Math Complexity: 4.5/10 Empirical Rigor: 7.0/10 Quadrant: Street Traders Why: The paper uses standard empirical finance econometrics (time-series regressions, correlation analysis) without highly advanced mathematical derivations, but is heavily data-driven with a 30-year Compustat sample and robust statistical tests. flowchart TD A["Research Goal Understand stock market reaction to aggregate earnings news"] --> B["Data: CRSP & Compustat Time Period: 1988-2017"] B --> C["Methodology: Event Study Construct SUE portfolios"] C --> D{"Key Computational Processes Abnormal Returns Calculation"} D --> E["Analyze Abnormal Returns vs Aggregate Earnings Surprise"] D --> F["Information Asymmetry Analysis Trading Volume Patterns"] E --> G["Key Findings/Outcomes"] F --> G subgraph G ["Key Findings/Outcomes"] G1["Market Underreacts to Aggregate Earnings News"] G2["Abnormal Returns Persist Post-Announcement"] G3["Support for Behavioral Finance Over Market Efficiency"] G4["Information Asymmetry Explains Delayed Reaction"] end style G fill:#e1f5e1,stroke:#2e7d32 style A fill:#e3f2fd,stroke:#1565c0 style B fill:#fff3e0,stroke:#ef6c00

Does M&A Pay? (Chapter 3) ArXiv ID: ssrn-306750 “View on arXiv” Authors: Unknown Abstract Following the largest M&A wave in history, it is appropriate to assess the evidence on the profitability of this activity. One popular view is that merger activ Keywords: Mergers & Acquisitions (M&A), Corporate Finance, Event Study, Shareholder Value, Equities Complexity vs Empirical Score Math Complexity: 2.0/10 Empirical Rigor: 3.0/10 Quadrant: Philosophers Why: The paper is a literature review synthesizing findings from existing studies, focusing on conceptual frameworks and economic reasoning rather than novel mathematical derivations or proprietary backtesting. The empirical work referenced is from prior studies, not original data analysis, placing it in the theoretical/conceptual realm. flowchart TD Q["Research Question Does M&A Create Shareholder Value?"] D["Data Input Event Study Database US Mergers 1980-2000"] M["Methodology Event Study Analysis Calculate Abnormal Returns"] C["Computation CAR = Cumulative Abnormal Returns vs. Market Benchmark"] F1["Findings Target Shareholders Gain ~+20% Abnormal Returns"] F2["Findings Acquirer Shareholders Lose ~-2% Abnormal Returns"] F3["Findings Combined Gains Positive ~+2% Overall Wealth Creation"] Q --> D D --> M M --> C C --> F1 C --> F2 C --> F3