Event Studies are often conducted by equity research analysts to determine whether a particular event has had an impact on a company's stock price. These events can include earnings announcements, dividend changes, product introductions and acquisitions, among other things. They are often used as an alternative to traditional methods of performing valuation analysis when valuing financial instruments that may have been affected by the occurrence of such an event.Event studies are the statistical analysis of stock market responses to corporate events and other information announcements. These can include business combinations, spin-offs, earnings announcements, and dividend payments. An event study typically focuses on a single specific announcement that incorporates a change in the security's value.
