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Indra Giri and Priya Chetty on September 1, 2016 8 Comments
Event study helps to determine the effect of an event on a dependent variable. In most cases event study is used to determine the impact of an event on the stock prices of a company. The main motive of the event study is to find whether the event has abnormal returns on the prices of the stock.
While investing in the stock market, the main aim for anyone is to generate the return on invested capital. Investors aren’t only trying to get the profitable returns from investing capital, but they also expect to outperform in the market.