Event study methodology

Assessments

Empirical research

If you choose to do this assessment you are required to design and carry out an event study by first searching for announcements of mergers and acquisitions using Thomson Banker.  You should

choose to look at the share price reaction on the date of the announcement of the acquirer company.  The announcement dates should be restricted to 1st January 2011 onwards You will need

to read a synopsis of previous literature examining share price reaction around mergers to fully understand how to set up your hypotheses and methods of enquiry and should discuss the

literature briefly in your report.  Links to relevant papers will be put on Blackboard.  The marking grid for the empirical research is attached.

Due to time constraints you should keep your sample to around 50 – 100 companies.

Event study marking scheme

A*
A+    A    A-    B+    B    B-    C+    C    C-    D+    D    D-    E    F    F1    F2    F3
Introduction including brief review of relevant literature

Selection of data and description

Discussion of methodology  adopted

Application of methodology

Presentation of results

Discussion of results

Conclusion