Event study methodology: the adequate instrument to apprehend stock performance

Abstract

The financial markets crises that occurred in history have been the primary focus for researchers allowing them to study and examine performance of securities, allowing the financial community to benefit from the rise and appearance of the event study methodology providing the finance researchers to be able to ascertain securities performance. Our paper is delighted to provide a clear definition of the concept of stock performance alongside the concept of performance and firm performance, to prove the credibility of the event study methodology to measure stock performance and finally the steps to measure the short-and long-term stock performance using event study methodology.