The author is Associate Professor of Accounting at the University of Oregon. Earlier versions of this paper were presented at workshops at Monash University and the University of Queensland. The author acknowledges the helpful comments of the workshop participants, particularly Bob Officer. In addition, the comments of L. Dann, G. Foster, R. King, T. O'Keefe and B. Spicer helped to sharpen the exposition and organization of the paper.
UNDERSTANDING AND CONDUCTING EVENT STUDIES
Article first published online: 7 DEC 2006
Journal of Business Finance & Accounting
Volume 10, Issue 4, pages 561–584, December 1983
How to Cite
Bowman, R. G. (1983), UNDERSTANDING AND CONDUCTING EVENT STUDIES. Journal of Business Finance & Accounting, 10: 561–584. doi: 10.1111/j.1468-5957.1983.tb00453.x
- Issue published online: 7 DEC 2006
- Article first published online: 7 DEC 2006
- (Paper received August 1982. revised December 1982)
Event studies have become one of the most important methodological approaches to empirical research in frnance and accounting. This paper discusses the nature of event studies, differentiating the four basic types: information content, market efficiency, model evaluation and metric explanation. A structure is identified for the conduct of event studies and the steps discussed. Specific studies in the literature are cited as illustrations of various points. Finally, a number of issues of interpretation, evaluation and design are discussed which are crucial to the effective conduct and understanding of an event study.