Stock Market Event Studies and Competition Commission Inquiries

Abstract

Event study analysis is a branch of econometrics which attempts to measure the effects of economic events on the value of firms by examining stock market data. Providing that share prices reflect the underlying economic values of assets, changes in equity values will properly capture expected changes in the economic profitability of the firm. This paper considers the effect on stock prices of announcements relevant to Competition Commission references, using established event study methodology.

Keywords: event studies, shares, share prices, Competition Commission, stock market

JEL Classification: G14