Conclusion

Abstract

Event studies are a primary tool for financial research. They provide means for assessing the effect of corporate and environmental occurrences on the market values of securities. Numerous events such as earnings announcements, releases of quarterly and annual financial reports, dividend announcements, stock splits and reverse splits, and initial and seasoned public offerings are amenable to the event study research analysis technique. In addition to addressing the impact of various events on security prices, the ESA helps to shed light on the efficiency of capital markets.