Event study tests generally focus on the price reaction to

A) publicly released information
B) private information
C) past information
D) none of the above

Question

Event study tests generally focus on the price reaction to

A) publicly released information
B) private information
C) past information
D) none of the above

Quizplus · Accepted Answer

Event study tests generally focus on the price reaction to publicly released information.This information includes financial reports,press releases,stock exchange announcements,capital structure changes and takeover announcements.These studies typically examine the short-term price reaction,and are concerned with issues such as the speed of the reaction and the degree of underreaction or overreaction.

Event Study Tests Generally Focus on the Price Reaction to