*Department of Management Studies, JKK Nattraja College of Engineering & Technology, Komarapalayam, Namakkal-638 183, Tamilnadu, India.
**Department of Management Studies, Excel Business School, Komarapalayam, Namakkal-637303, Tamilnadu, India.
***Department of Management Studies, King College of Technology, Namakkal – 637020, India.
****(ECE), Department of ECE, AMS Engineering College, Namakkal, Tamilnadu, India.
Online published on 30 March, 2012.
The event study methodology is considered to investigate the impact of an event on a specific dependent variable. A generally used dependent variable in event studies is the stock price of the company. The definition of such an event study will be a study of the changes in stock price beyond expectation i.e., abnormal returns during the event window period. While employing event studies to measure the event impact, we may found the techniques to outperform the market. The event study methodology seeks to determine whether there is an abnormal stock price effect associated with an event. From this, the researcher can infer the significance of the event. The basic and indispensable assumption followed in the event study methodology is that the market is always efficient. In the efficient market, the impact of an event will be reflected immediately in the stock prices.
Dividend announcements, semi-strong form of Efficient Market Hypothesis, Event Studies, Abnormal returns, Pre and Post announcement periods, chart analysis
