Speaker: Dr. Wale Dare
An event study assesses the economic impact of an event. In corporate finance, the event is usually of a regulatory or economic nature and may affect a single economic agent, a sector of the economy, or the entire economy. In most applications, event studies are concerned with the impact of an event such as an earnings announcement or a change in fiscal policy on the valuation of financial securities.
We will focus on the design, methodology, and interpretation of event studies. The seminar will emphasize best practices as well as the main steps involved in carrying out an event study successfully. The seminar will review various econometric techniques used to disentangle as much as possible the impact of a specific event on the price of an asset from all the other competing sources of price fluctuations. We will review the notion of normal or anticipated prices, which are estimates what prices, would counterfactually have been if the event had not occurred. The estimates are important inputs for computing the economic impact of a given event.
To get the most of out the seminar a basic understanding of linear regression using matrix notation is recommended.
An event study assesses the economic impact of an event. In corporate finance, the event is usually of a regulatory or economic nature and may affect a single economic agent, a sector of the economy, or the entire economy. In most applications, event studies are concerned with the impact of an event such as an earnings announcement or a change in fiscal policy on the valuation of financial securities.
We will focus on the design, methodology, and interpretation of event studies. The seminar will emphasize best practices as well as the main steps involved in carrying out an event study successfully. The seminar will review various econometric techniques used to disentangle as much as possible the impact of a specific event on the price of an asset from all the other competing sources of price fluctuations. We will review the notion of normal or anticipated prices, which are estimates what prices, would counterfactually have been if the event had not occurred. The estimates are important inputs for computing the economic impact of a given event.
To get the most of out the seminar a basic understanding of linear regression using matrix notation is recommended.