Rather than investigating the effects of individual events, reverse event studies calculate abnormal returns for a study period and then match exploratory events to significant abnormal returns, volumes, and volatilities. This approach turns around the invstigative lens of the researcher: It explain the evolution of a distinct asset, whereas traditional event studies mostly seek to explain the determinants of an individual event type's market response.
Reverse event studies differ in their empirical approach: They require highly granular news and asset data such that explanatory events can be reliably linked. Further, they imply step-wise event study analytics over time periods that are typically much longer than the event windows of traditional event studies. Traditional programs to perform event study tools are ill-suited to accomodate the need for reverse event study analyses. The sequence of capabilities needed for performing such analyses is illustrated in Figure 1 (coming soon).