Lesson plan
Event study
An event study is a statistical and econometric method to assess the impact of events on outcome variables. An event study is a difference-in-differences design applied to panel data, wherein individuals receive treatment at different points in time. As the event methodology can be used to elicit the effects of any type of event on the direction and magnitude of any outcome variable, it is very versatile in quasi-experimental contexts. Event studies are thus common to various research areas, such as accounting, finance, management, economics, marketing, information technology, law, political science, operations, and supply chain management. One aspect often used to structure the overall body of event studies is the breadth of the studied event types. On the one hand, there is research investigating the stock market responses to economy-wide events (i.e., market shocks, such as regulatory changes, or catastrophic events like war). On the other hand, event studies are used to investigate the stock market responses to corporate events, such as mergers and acquisitions, earnings announcements, debt or equity issues, corporate reorganisations, investment decisions, and corporate social responsibility.
Article summary
An event study is a statistical and econometric method to assess the impact of events on outcome variables. An event study is a difference-in-differences design applied to panel data, wherein individuals receive treatment at different points in time. As the event methodology can be used to elicit the effects of any type of event on the direction and magnitude of any outcome variable, it is very versatile in quasi-experimental contexts. Event studies are thus common to various research areas, such as accounting, finance, management, economics, marketing, information technology, law, political science, operations, and supply chain management. One aspect often used to structure the overall body of event studies is the breadth of the studied event types. On the one hand, there is research investigating the stock market responses to economy-wide events (i.e., market shocks, such as regulatory changes, or catastrophic events like war). On the other hand, event studies are used to investigate the stock market responses to corporate events, such as mergers and acquisitions, earnings announcements, debt or equity issues, corporate reorganisations, investment decisions, and corporate social responsibility.
Key claims
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Discussion questions
- Summarise the article in your own words. Which single claim would you verify first, and why?
- Which claim in this article is most likely to be revised as the sources update? How would you check its current status?
- If two sources disagreed about one of these facts, what would you need in order to trust one over the other?
Bibliography
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Key claims and bibliography are generated from the same tracked claims and sources as the article page.