Evnt methodyology
-
Upload
sami-swati -
Category
Business
-
view
131 -
download
1
Transcript of Evnt methodyology
The event study methodology studies the effect of an event on a specific
dependent variable. In the particular study, the event methodology is used to
investigate the effect of terrorism events in Karachi on stock exchange which is
considered dependent variable. The event study is the study of abnormal returns
(beyond expectation change in stock prices) over a specific period of time which
called event window. By using event study methodology, the particular study will
seeks to describe whether there is any unexpected change in stock price
associated with the event. The study will explore the significance from abnormal
return associated with the event.
The study assume for using event study mythology that market is efficient. By
assuming that market is efficient, the effects of such events will reflect stock
prices immediately and study will review relatively in short period.
Procedure of event study composition;
1) Identification of terrorist event
2) Identification of estimation of pre-event, event and post event windows
(periods)
3) Estimation of parameters using estimation window data
4) Measuring of abnormal returns in the event window
5) Aggregating abnormal returns