TY - JOUR
T1 - How to apply the event study methodology in STATA
T2 - An overview and a step-by-step guide for authors
AU - Ullah, Subhan
AU - Zaefarian, Ghasem
AU - Ahmed, Rizwan
AU - Kimani, Danson
PY - 2021/12/2
Y1 - 2021/12/2
N2 - The event study methodology, which is gaining recognition in the business and marketing disciplines, is a technique used to capture the impact of significant events and announcements at the firm level and country level. Originating from the finance and economics disciplines, and being widely used in the finance literature, the method has recently attracted the attention of business and marketing researchers, particularly in the aftermath of Covid-19, which has adversely affected all kinds of businesses across the world. The event study methodology can be implemented to measure the impact of a major corporate announcement (e.g. new product development) or a significant event on corporate financial performance, profitability, and market valuation over a specific event window, such as a few days (a short window) or a few years (a long window). In this article, we provide a detailed explanation of the step-by-step procedure for implementing the event study methodology in STATA, using Covid-19-related death announcements from the United States, France, Spain, Italy, China, and the United Kingdom. We also provide STATA commands that can be used by researchers when implementing the event study methodology.
AB - The event study methodology, which is gaining recognition in the business and marketing disciplines, is a technique used to capture the impact of significant events and announcements at the firm level and country level. Originating from the finance and economics disciplines, and being widely used in the finance literature, the method has recently attracted the attention of business and marketing researchers, particularly in the aftermath of Covid-19, which has adversely affected all kinds of businesses across the world. The event study methodology can be implemented to measure the impact of a major corporate announcement (e.g. new product development) or a significant event on corporate financial performance, profitability, and market valuation over a specific event window, such as a few days (a short window) or a few years (a long window). In this article, we provide a detailed explanation of the step-by-step procedure for implementing the event study methodology in STATA, using Covid-19-related death announcements from the United States, France, Spain, Italy, China, and the United Kingdom. We also provide STATA commands that can be used by researchers when implementing the event study methodology.
KW - Corporate announcement
KW - Covid-19
KW - Event study
KW - Research methodology
KW - STATA commands
UR - http://www.scopus.com/inward/record.url?scp=85102991367&partnerID=8YFLogxK
U2 - 10.1016/j.indmarman.2021.02.004
DO - 10.1016/j.indmarman.2021.02.004
M3 - Editorial
AN - SCOPUS:85102991367
SN - 0019-8501
VL - 99
SP - A1-A12
JO - Industrial Marketing Management
JF - Industrial Marketing Management
ER -