Review of Quantitative Finance and Accounting

, Volume 11, Issue 2, pp 111–137

The Event Study Methodology Since 1969

  • John Binder

DOI: 10.1023/A:1008295500105

Cite this article as:
Binder, J. Review of Quantitative Finance and Accounting (1998) 11: 111. doi:10.1023/A:1008295500105


This paper discusses the event study methodology, beginning with FFJR (1969), including hypothesis testing, the use of different benchmarks for the normal rate of return, the power of the methodology in different applications and the modeling of abnormal returns as coefficients in a (multivariate) regression framework. It also focuses on frequently encountered statistical problems in event studies and their solutions.

Event study finance methodology 

Copyright information

© 1998 Kluwer Academic Publishers, Boston. Manufactured in The Netherlands. 1998

Authors and Affiliations

  • John Binder
    • 1
  1. 1.Department of Finance (MC 168), College of BusinessUniversity of Illinois-ChicagoChicago

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