Event Studies Attempt to Measure

question 36

Multiple Choice

Event studies attempt to measure:

• A)the influence of information released to the market on returns in days surrounding its announcement.
• B)if the market is at least semistrong form efficient.
• C)whether there is a significant reaction to public announcements.
• D)All of the above.
• E)None of the above.

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Definitions:

Proxy

A person authorized to act for another, especially in a vote, or the act of authorizing someone to vote on one's behalf in corporate matters.

Quorum Requirements

The minimum number of members who must be present at any of its meetings to make the proceedings of that meeting valid.

Directors

Members of a corporation's board responsible for making major decisions and overseeing the managerial aspects of the company's operations.

Corporate Earnings

The profit a company makes after deducting all costs, expenses, interest, and taxes from its total revenue.