In the days following the release of information

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Unformatted text preview: return), whereas at day 0 when the new information is released the abnormal return is equal to 3 percent. The adjustment in the stock price is immediate. In the days following the release of information there is no further drift in the stock price, either upward or downward. Download free ebooks at 51 Corporate Finance Market efficiency Cumulative abnormal return Figure 7: Stock price reaction to news announcement 4 3 2 1 0 -1 -10 -5 0 5 Please click the advert Days relative to announcement In Paris or Online International programs taught by professors and professionals from all over the world BBA in Global Business MBA in International Management / International Marketing DBA in International Business / International Management MA in International Education MA in Cross-Cultural Communication MA in Foreign Languages Innovative – Practical – Flexible – Affordable Visit: Write: [email protected] Call: Download free ebooks at 52 Corporate Finance Market efficiency 7.1.3 Strong...
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This note was uploaded on 10/26/2012 for the course 19 19 taught by Professor - during the Spring '12 term at Sunway University College.

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