kaal:claim:2629451-012

The event study design is appropriate for N/DPAs because the wrongdoing event is identifiable through the execution of a reasonably standardized agreement and because information about the firm's wrongdoing can change the distribution of stock returns.

Source quote, verbatim

(1) the event of corporate wrongdoing is identifiable through N/DPAs execution and N/DPA executions are reasonably similar in format, (2) the information pertaining to N/DPA firm wrongdoing has the potential to change the distribution of stock returns,

From

Wulf A. Kaal, Timothy Lacine, Stock Price Response to Non- and Deferred Prosecution Agreements (2015), II. Hypotheses, p. 4
https://ssrn.com/abstract=2629451 · source PDF

Cite as

Wulf A. Kaal, Timothy Lacine, Stock Price Response to Non- and Deferred Prosecution Agreements (2015). SSRN: https://ssrn.com/abstract=2629451

Holds when

N/DPA executions are reasonably similar in format
events are evenly distributed and cross-sectionally independent

Classification

designsupport: arguedresearch-methods

Verify

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Attestation record: colloquium/attestations/2fd1a143b6d6e139...json
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