# kaal:claim:2629451-012

**Claim.** 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.

**Type.** design  **Support.** argued

**Holds when.**

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

**Source quote.**

> (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, page 4

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

**Verify.** sha256 of source PDF `507404d641abb922ab6d8e3a0b032e35ead2befd7b88746d09d178a8fa816957` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20and%20Lacine%20-%202015%20-%20Stock%20Price%20Response%20to%20Non-%20and%20Deferred%20Prosecution%20Agreements.pdf

**Topics.** research-methods

**Keywords.** event-study, research-design, methodology, ndpa

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