What type of research looks at the changes in market valuations in response to the announcement of diversifying acquisitions to assess the success of diversification?
A)Event studies
B)Valuation studies
C)Diversification studies
D)Market studies
E)Acquisition studies

Question

Quizplus · Accepted Answer

Event studies are specifically designed to analyze the impact of specific events, such as an announcement of an acquisition, on market valuations. In this case, the event being studied is the announcement of a diversifying acquisition, and the research is seeking to assess the success of diversification by examining changes in market valuations.

What Type of Research Looks at the Changes in Market