The event study methodology is typically used to study the economic effects of discrete events. There are several other methods, which also offer their distinct perspectives on discrete events; most notably, event history analyses and the optimal matching algorithm. Our first slide-deck illustrates the different methods and their use cases.
Slide-Deck 1: Studying Discrete Events
The event study methodology assumes that capital markets efficiently translate new information into stock price changes. Capital market theory considers different forms of such market efficiency, ranging from weak, over semi-strong, to strong efficiency. Slide-deck 2 discusses these forms of market efficiency.
Slide-Deck 2: The Capital Market Efficiency Hypothesis
Going forward, we will add further slide-decks on the event study methodology and its applications. Please revisit this page later for the final versions or view the preliminary versions here and feel free to comment.