Event Study Methodologies in Information Systems Research
University of California, Berkeley - Haas School of Business
Daniel E. O'Leary
University of Southern California - Marshall School of Business; University of Southern California - Leventhal School of Accounting
January 30, 2011
International Journal of Accounting Information Systems, Forthcoming
Event studies are based on the theoretical framework of efficient capital markets and the notion that security prices include all information available to the market. As a result, announcements made by firms provide to market participants information that can be impounded into the market price. This paper investigates the use of event studies in accounting information systems research using a three pronged approach. First, this paper provides a comprehensive survey of research that uses event study methodologies, where the events are announcements made by firms about issues related to accounting information systems, e.g., announcements of the adoption of enterprise resource planning systems and of the effect of security breaches in firms’ information systems. Second, this paper summarizes event study methodologies used in prior research, along with some of the key parameters and concerns associated with their implementation. Third, this paper provides remarks on key event study modeling issues, and it offers recommendations to researchers.
Number of Pages in PDF File: 26
Keywords: Information Systems, Event Study, Market Efficiency, Capital Markets, Future Performance, Accounting Information Systems
JEL Classification: G14, L86Accepted Paper Series
Date posted: January 31, 2011 ; Last revised: February 3, 2011
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