Event Studies in Information Systems Research - Semantic Scholar

Americas Conference on Information Systems

Event Studies in Information Systems Research: An Updated Review

Journal: Manuscript ID: Submission Type: Mini-Track:

15th Americas Conference on Information Systems AMCIS-0434-2009.R1 Paper Information Systems Evaluation < Strategic Use of IT

Electronic copy available at: http://ssrn.com/abstract=1457432

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Roztocki and Weistroffer

Event Studies in IS Research: An Updated Review

Event Studies in Information Systems Research: An Updated Review Narcyz Roztocki State University of New York at New Paltz [email protected]

Heinz Roland Weistroffer Virginia Commonwealth University [email protected]

ABSTRACT

A change in the stock value of a company is an important indicator of firm performance. Event studies, which look at abnormal stock price reactions to specific events or happenings that may impact a business's operations, represent a relatively new but fast growing research approach in the information systems field. Building on earlier literature reviews, in this paper we examine forty-six event studies related to information technology. The purpose of this updated review is to determine the current state of this research stream and to indentify existing research gaps. These gaps may represent promising opportunities for future event studies. Keywords

Event studies, literature review, investments in IT, productivity of IT, IT outsourcing, IT security. INTRODUCTION

According to the efficient market theory (Fama 1970, 1991), stock prices reflect all available information to investors. When unforeseen news reach the financial markets, investors appraise their relevance and possible effects on particular firms, industries, and economic regions; if the events described in the news are believed to substantially affect the financial performance of particular companies, their stocks are likely to move up or down. In many business research areas, such as accounting, finance, and strategic management, event studies have been used extensively since the late 1960s (Beaver 1968; Fama, Fisher, Jensen and Roll 1969) to examine the effects of various corporate events such as shifts in strategies (Markides 1992) or changes in top management (Lubatkin, Chung, Rogers and Owers 1989). In contrast, in information systems (IS) research, event studies have become reasonably popular only in the last ten years or so. Since then, they have been used, for example, to identify specific factors that impact the outcomes of information technology (IT) investments by publicly traded firms. In recent years, the number of event studies in IS research has increased and the focus has been extended beyond IT investments to other issues, such as security incidents, IT outsourcing initiatives, Web traffic, and standardization projects. In spite the growing number of event studies, this methodology is still not that well known in the IS field, unlike other, more traditional research approaches. Moreover, up-to date and systematic literature reviews, common for more traditional research methods, practically do not exist for event studies in IT. According to our knowledge only two such reviews on event studies in IS research have been previously published: In one of them, Dehning, Richardson and Stratopoulos (2003a) reviewed twelve event studies, mostly about investments in IT and e-commerce initiatives; and in the other, more recent paper, Roztocki and Weistroffer (2008a) reviewed thirty event studies, extending the focus beyond IT investments to other IS related topics, such as security breaches, hacker attacks, outsourcing announcements, and XML standardization initiatives. Thus, this paper attempts to close to this gap by presenting a larger and up-to-date, systematic literature review of event studies in IS related areas. The key motivation for this paper is to familiarize IS researchers with this methodology and its potential within the IS discipline, and to draw attention to apparent gaps in the published event study research. The remainder of this paper is structured as follows: After describing our procedure for collecting and selecting papers for our sample, and its characteristics, we categorize and review all the papers. We then summarize and discuss our findings and point to several limitations, which at the same time present avenues for future research. PROCEDURE

In building our sample of event studies, we made use of the two earlier literature reviews of event studies in IS (Dehning et al. 2003a; Roztocki and Weistroffer 2008a). The sample obtained from these reviews was then expanded using literature search databases, such as ABI/Inform (Proquest), Business Source Premier (EBSCO), JASTOR, and Science Direct. In addition to using a topic related keyword search, we also compiled a list of authors of papers already in our sample and used their names in our search. We also applied other standard literature search techniques, such as examining the reference

Proceedings of the Fifteenth Americas Conference on Information Systems, San Francisco, California August 6th-9th 2009

Electronic copy available at: http://ssrn.com/abstract=1457432

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Americas Conference on Information Systems Roztocki and Weistroffer

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sections of selected paper for possible pointers to additional event studies (Webster and Watson 2002). The most recent literature search was conducted in fall of 2008. To assure that all the papers in the sample represent mature work, we adopted the inclusion/exclusion rules proposed by Roztocki and Weistroffer (2008a). Consequently, to be included in our sample, an article needed to use an event studies approach as the primary research approach and be published in a journal or in proceedings of a major IT conference (ECIS, HICSS, and ICIS). We ended up with a sample of forty-six papers. EVENT STUDIES IN THE FIELD OF INFORMATION TECHNOLOGY Sample Description

One of the papers in our sample was published in 1993, while the other forty-five were published in the time period from 2000 to 2008. The distribution of the papers by year of publication is depicted in Table 1.

Year of Publication 1993 2000 2001 2002 2003 2004 2005 2006 2007 2008 Total

Number of Papers 1 1 4 3 5 3 6 9 11 3 46

Table 1. Publication of Information Systems Event Studies

As can be seen from Table 1, and keeping in mind that the data for 2008 is likely to be incomplete, given the fact that our literature search was conducted in fall 2008, the number of publications seems to have increased fairly consistently over the years. Review

Similar to earlier literature reviews on event studies in IS (Dehning et al. 2003a; Roztocki and Weistroffer 2008a), all the papers in our sample were classified according to the topics of investigation. Most of the forty-six event studies (twentyseven) examined stock price reaction to IT investments. Two other popular topics of investigation were IT security/trustworthiness (nine papers) and IT outsourcing initiatives (four papers). The remaining six papers focused on various topics such as establishing an Internet delivery outlet, Web traffic, website redesigning, XML standardization, merger and joint ventures of IT firms, and IT-related patent infringements. After classifying the papers by topics of investigation, we also tried to identify the current, existing research streams within these topic areas. This procedure, frequently used in literature reviews, helps to identify areas of concern and points to potential research gaps. Information Technology Investments (twenty-seven papers)

In the group of papers that examined stock price reaction to IT investments, we identified five major research streams. One stream investigated the effect of IT investments in general, while four other research streams investigated reaction to specific technologies, such as e-commerce initiatives, investments in enterprise integration technology, investments in human capital, and knowledge management initiatives. 1: General IT Investments (ten papers) The research stream on IT investments in general, represented by ten papers, started with an event study that investigated two major factors which may influence the stock market reaction to such investments: industry sector and the innovativeness of the technology (Dos Santos, Peffers and Mauer 1993). The results of that study indicate that only innovative IT investments positively affect stock prices, but that there is no significant stock price reaction to IT investment announcements in general. Im, Dow, and Grover (2001) also examined stock market reaction to IT investments in general. The results indicated that the


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magnitude of stock market reaction to the announcements is related to the size of the organization: the reaction is weaker for larger firms and proportionally heftier for smaller firms. Later event studies on general IT investments compared infrastructure IT investments with application IT investments (Chatterjee, Pacini and Sambamurthy 2002), assessed the effects of transformative IT investments (Dehning, Richardson and Zmud 2003b), compared stock market reactions to exploitative IT investments versus exploratory IT investments (Hunter 2003), and compared reactions to IT investments by growing firms to those by more stagnant firms (Oh, Kim and Richardson 2006). Moreover, two further studies investigated the effect of activity-based costing systems on the stock market reaction to general IT investments (Roztocki and Weistroffer 2006, 2007b). Recently, the scope of investigation has also been expanded beyond the USA. Meng and Lee (2007) compared stock market reaction to IT investments in China with the stock market reaction to IT investments in the USA, and Nagm and Kautz (2008) investigated IT investments in Australia 2: E-Commerce Initiatives (seven papers) This research stream seems to originate with an event study conducted by Subramani and Walden (2001) who investigated ecommerce initiatives using 251 announcements from the time period ranging from October 1, 1998, to December 31, 1998. The results of this study, conducted before the dot-com crash, indicate that stock markets react highly favorably to ecommerce announcements. Dehning, Richardson, Urbaczewski, and Wells (2004) looked at validating the results of Subramani and Walden (2001). For their study, in addition to the original sample of 251 announcements used by Subramani and Walden (2001), Dehning et al. (2004) collected an additional 538 announcements covering the period October 1, 2000, to December 31, 2000. However, they found no significant stock price reactions to e-commerce announcements in the fourth quarter of 2000. A subsequent study by Dardan, Stylianou, and Dardan (2005), dealing with the relevance of e-commerce initiatives, used a set of 349 announcements ranging from January 1, 1999 to December 31, 2000. The results indicate a positive reaction. Overall, the results of the event studies suggest that e-commerce initiatives are extremely risky endeavors and the stock market reaction is highly dependent on the timing of announcements. To this extend, Dewan and Ren (2007) used an event study approach to examine the risk effects of e-commerce initiatives, based on sixty-seven announcements in 1996, 152 announcements in 1998, 215 announcements in 2000, and 206 announcements in 2002. Their results indicate that total and unsystematic risk increased due to e-commerce initiatives in 1998 and 2000, whereas systematic risk decreased due to e-commerce initiatives in 1996 and 2002. More recently the scope of investigation moved beyond the USA also in this research stream. Ferguson, Finn, and Hall (2005) investigated stock market reaction to e-commerce projects in Australia. The sample included 232 announcements from January 1, 1988 to June 30, 2001. Similar to the results obtained by Subramani and Walden (2001) for US companies, investors in Australia also seem to appreciate investments in e-commerce. However in contrast to the US, in Australia the non-innovative investments seem to be perceived as more valuable than the innovative ones. Two other event studies examined stock market reaction to e-commerce initiatives in Taiwan. In the first study, Cheng, Tsao, Tsai, and Tu (2007) used data from thirty-two Taiwanese financial service companies that embraced e-commerce from 1997 to 2003. This study found a positive reaction to such investments. In the second study, Lin, Jang, and Chen (2007) examined e-service initiatives in Taiwan, based on 179 announcements. Their results also indicate positive abnormal stock market returns with e-service announcements. They also found that market size and firm size have negative effects on valuation, while firm experience has positive effects on firm value. Moreover, pioneers and late entrants seem to have an advantage over early entrants, and firms acquiring technology through collaborative research and development or using diversification expansion strategies have higher returns. 3: Integration Technology (ERP and EAI) (four papers) In the first event study in this research stream, Hayes, Hunton, and Reck (2001) examined the stock market reaction to investments in enterprise resource planning (ERP) systems by looking at ninety-one announcements collected for the time period 1990-1998. The results suggest that ERP implementations are rewarded by a positive stock market reaction. Moreover, the results indicate that investors make a distinction between financially “healthy” and “unhealthy” or between “large” and “small” companies. Also when the ERP system is acquired from a large vendor, a positive reaction is more likely. Using a set of 116 announcements on investments in ERP for the years 1997-2001, Ranganathan and Brown (2006) revisited the possible effects of ERP implementation. Their study confirmed a positive reaction to investments in ERP. However, contrary to the study by Hayes et al. (2001), they found no differences in stock price reaction with respect to systems acquired from large or small vendors. Roztocki and Weistroffer (2007a) examined the stock market response to eighty-one enterprise application integration (EAI) investment announcements from the period 1998-2005. Company riskiness, as measured by beta value, and stock market conditions, viz. bull versus bear markets, were found to be important influential factors. In a subsequent study in this research


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stream, Roztocki and Weistroffer (2008b) compared differences in stock market reactions to announcements of EAI and ERP implementations. The results suggest that, under bear market conditions or for companies perceived as risky, announcements of EAI investments are likely to result in negative market reactions. In contrast, the ERP investment announcements have no such effect. Authors Dos Santos et al. (1993)

Chatterjee et al. (2002) Dehning et al. (2003)

Main Factors Studied Industry and type of IT CIO position (timing, industry, external vs. internal hire) ERP implementation (company size, financial health, vendor characteristic) Industry, company size, timing E-commerce (company type, B2B vs. B2C, type of goods) Type of IT Type of IT, industry, leaders vs. laggards

Hunter (2003)

Type of IT

Dehning et al. (2004) Dardan et al. (2005)

E-commerce (timing) E-commerce (bull vs. bear market) E-commerce (location Australia; innovative vs. non-innovative)

Chatterjee et al. (2001) Hayes et al. (2001) Im et al. (2001) Subramani & Walden (2001)

Ferguson et al. (2005) Filbeck et al. (2005)

Supplier-chain related IT

Sabherwal and Sabherwal (2005) Dardan et al. (2006) Oh et al. (2006b)

IT-based knowledge management initiatives Customer-related IT Company type, type of IT ERP implementation (number of modules, number of locations, vendor characteristics Company type, type of IT E-commerce (location; Taiwan) Risk and IT investments CIO appointments E-service initiatives in Taiwan Company location EAI (timing, company characteristics, market conditions) ABC, risk factor, market condition IT-based knowledge management initiatives IT investments in Australia EAI and ERP implementations

Ranganathan & Brown (2006) Roztocki and Weistroffer (2006) Cheng et al. (2007) Dewan and Ren (2007) Khallaf and Skantz (2007) Lin et al. (2007) Meng and Lee (2007) Roztocki and Weistroffer (2007a) Roztocki and Weistroffer (2007b) Sabherwal and Sabherwal (2007) Nagm and Kautz (2008) Roztocki and Weistroffer (2008b)

Event Window(s) (-1,0) (-1,0), (-1,1) (0,1) (-1,0) (-5,5), (-10,10) (-1,0), (0,1), (-1,1), (-2,2) (-1,1) (-1,1), (-2,2), (-5,5), (10,10) (-1,1), (-5,5), (-10,10) (-1,1) (-1,1), (-5,5), (-10,10) (-10,-6), (-5,-2), (-1,1), (2,5), (-6,10) (-2,2) (-1,1) (-2,-1), (0,1), (2,3) (-2,2), (-1,1), (-1,0), (0,1), (0,2) (-1,0) (-5,5) (-1,1), (-10,10) (-1,1) (-1,2) (0,2) (-1,0), (-1,1) (-1,0), (-1,1) (0,1), (-1,1), (-2,2) (-1,1), (-5,5) (-1,0), (-1,1)

Table 2. Event Studies Looking at IT Investments

4: Investments in IT Related Human Resources (CIO positions) (two papers) One of the two papers in this research stream, a study by Chatterjee, Richardson and Zmud (2001), looked at stock price reaction to the initial creation of a chief information officer (CIO) position. Using ninety-six announcements for the time period 1987-1998, this study found that investors react mostly positively to the creation of a CIO position. In the second paper, Khallaf and Skantz (2007) reexamine the conclusions reached by Chatterjee et al. (2001) based on a large sample of 461 announcements of CIO appointments to new and existing CIO positions during the period 1987-2002. There were no significant differences in the market reaction between appointments to new or existing CIO positions, but the market seems to discriminate among announcements of newly appointed CIOs based on personal quality characteristics.


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5: Knowledge Management and Sharing of Data with Business Partners and Customers (four papers) In this relatively new research stream, one event study (Filbeck, Gorman, Greenlee and Speh 2005) reported positive stock price reactions based on 247 advertisements in trade magazines of investments in supplier chain related IT. A different study by Dardan, Stylianou, and Kumar (2006) examined stock market reaction to customer-related IT investments, using fiftyseven announcements of investments on customer relationship management (CRM) and related technology in seventeen companies from 1996 to 2001. A positive stock price reaction to such investments was noted. Two other studies examined IT-based knowledge management investments and reported positive stock market reactions. (Sabherwal and Sabherwal 2005) reported positive reaction for diversified companies and in a subsequent study (Sabherwal and Sabherwal 2007) positive reaction to investments that support a company’s strategy. Table 2 summarizes the factors examined in these studies, and also gives the event windows (two days and longer) used in each study. Security and Assurance (nine papers)

We identified two research streams related to security and assurance issues, namely hacker attacks and security breaches for one, and defective products and software vulnerability lapses for two. 1. Hacker Attacks and Security Breaches (seven papers) This research stream seems to originate with three event studies published in 2003. Campbell, Campbell, Loeb and Zhou (2003) investigated the stock price response to newspaper accounts of information security breaches. They found that security breaches involving confidential data led to significant, negative market reactions. Ettredge and Richardson (2003) looked at stock price movements for four Internet companies (Amazon, eBay, E*Trade, and Yahoo!) whose websites had been subject to hacker attacks, and compared them with 275 other companies that were not attacked. The stock market reaction over three days, February 7 to 9 of 2000, was examined. The results suggest that stocks of companies providing security products experience positive reaction as the news of hacker attacks hit the market. The effects of Denial-of-Service (DOS) hacker attacks on corporate websites was investigated by Hovav & D’Arcy (2003) by looking at twenty-three public announcements of DOS incidents released between January 1, 1998 and June 30, 2002. According to their results, the stock market does not react negatively to such reports. In the following year, Cavusoglu, Mishra and Raghunathan (2004) examined sixty-six announcements of Internet security breaches in the period 1996-2001. Their results found negative reactions to such announcements. Furthermore, the negative market responses were more pronounced when the security breaches were released by smaller firms. Moreover, stocks of Internet firms seem to be more affected by security breaches announcements than stocks of traditional firms. Anthony, Choi and Grabski (2006) investigated market reactions to commercial website outages. Their findings, based on eighty-six outage observations from nineteen firms indicate that the negative market reaction increases with the percentage of revenues earned through on-line sales. Andoh-Baidoo and Osei-Bryson (2007) looked at stock market reaction to Internet security breaches based on forty-one announcements for the years 1997-2003. In contrast to other event studies in IS research, the magnitude of the stock market reaction was measured by decision tree induction. The study confirmed that stock markets react negatively to Internet security breaches. Major influential factors are the characteristics of the attack and the size of the firm being attacked. Kannan, Rees and Sridhar (2007) used 102 events involving sixty companies to analyze the market reaction to information security breaches. Their results show that the overall negative abnormal market reaction was limited to the time period following September 11, 2001. 2. Defective Products and Software Vulnerability Lapses (two papers) In the first paper in this research stream, Hovav and D’Arcy (2005) examined stock market reaction to announcements concerning defective IT products, using ninety-two announcements collected from 1988 to 2002. Overall, the financial markets do not penalize companies announcing past sales of defective IT products and seems to react negatively only to announcements of IT products infected with computer viruses. Telang and Wattal (2007) also looked at the stock market effect of software vulnerability disclosures, examining 147 announcements of software vulnerability lapses from January 1999 to May 2004. However, contrary to the study by Hovav and D’Arcy (2005), Telang and Wattal (2007) found negative stock market reactions to such announcements. Table 3 summarizes the factors examined in the nine studies.


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Authors Campbell (2003) Ettredge and Richardson (2003) Hovav and D’Arcy (2003) Cavusoglu et al. (2004) Hovav and D’Arcy (2005) Anthony et al. (2006) Andoh-Baidoo and Osei-Bryson (2007) Kannan et al. (2007) Telang and Wattal (2007)

Main Factors Studied Security breaches Hacker attacks Denial of service, hacker attacks Internet security breaches Defective IT products Outrages of commercial websites Internet security breaches IT security breaches Defective IT Products

Event Window(s) (-1,1) (1,3) (-1,0), (-1,1), (-1,5), (-1,10), (-1,25) (0,1) (0,1), (0,5), (0,10), (0,25) (-1,2) (-1,1) (-1,2), (-1,7), (-1,29) (0,1), (0,2), (0,5), (0,10)

Table 3. Event Studies Looking at Security and Trustworthiness Information Technology Outsourcing Initiatives (four papers)

This research stream seems to originate with a study conducted by Hayes, Hunton, and Reck (2000) who investigated the effect of IT outsourcing, using seventy-six announcements from 1990 to 1997. They found that stock prices react positively to IT outsourcing announcements. Furthermore, firm size and industry appear to impact the market reaction. In contrast, Peak, Windsor, and Conover (2002) in a similar study did not find any significant abnormal reaction for large firms, but concluded that outsourcing of IT has an effect on company risk. Agrawal, Kishore, and Rao (2006) investigated stock market reaction to e-business outsourcing and in particular looked at the complexity of the outsourcing project, using ninety-six announcements from 1999 to 2002. Their results suggest that e-business outsourcing initiatives are received positively by the stock market when the outsourced project is relatively complex and is conducted in a prompt manner. Oh, Gallivan and Kim (2006) also examined stock market reaction to IT outsourcing announcements, controlling for contract size. The results of their study, based on 192 announcements from 1995 to 2003, suggest that contract size is negatively related to the stock market reaction, with large outsourcing projects resulting in abnormal price losses. Table 4 summarizes the factors investigated in the four studies. Authors Hayes et al. (2000) Peak et al. (2002) Agrawal et al. (2006) Oh et al. (2006a)

Main Factors Studied Firm size, industry Company size, effect on risk E-commerce Contract size, vendor characteristics

Event Window(s) (0,1) (-45,-1), (-1,1), (2,45), (1,0), (-45,45) (-1,1) (-5,-1), (-1,0), (-1,1), (0,1), (0,2), (-2,2), (2,5), (-5,5)

Table 4. Event Studies Looking at Outsourcing Initiatives Other Topics of Investigation (six papers)

Six papers in our sample investigated a wide range of other topics. Geyskens, Gielens and Dekimpe (2002) examined the market reaction to stocks of daily newspapers in France, Germany, the Netherlands, and the United Kingdom, when adding an Internet delivery channel to their traditional offerings. Based on the results from ninety-three announcements, they concluded that, on average, stock market investors perceive the expected gains from adding an Internet channel as outweighing the costs. Benbunan-Fich and Fich (2004) looked at stock market reaction to Web traffic achievements, using a sample of 283 announcements from 1996 to 2001. The study found a positive stock market reaction for the pre dot-com bubble sub-sample (1996-1999), but no significant reaction for the post dot-com bubble sub-sample sample (2000-2001). Based on seventy-seven announcements from 1995 to 1999, a different event study examined the stock market reaction to website redesigning initiatives (Benbunan-Fich and Fich 2005), and concluded that redesigning initiatives do not result in significant stock market reactions. XML standardization initiatives were examined by Aggarwal, Dai, and Walden (2006), based on 148 announcements from January 1999 to December 2003. The stock market appears to differentiate between proprietary and open XML schema standardization initiatives. Consequently, proprietary XML schema standardizations are likely to receive a positive stock market reaction, whereas there appears to be no significant stock market reaction to open XML schema. Lee and Lim (2006) looked at the impact of mergers, acquisitions and joint ventures on the stock market value of IT and nonIT firms. Based on a sample of 170 firms, they found that such strategic alliance announcements create significant gains in


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firm value. This positive impact seems to be stronger for non-IT firms than for IT firms. They also found that smaller strategic alliance partners perform better than their larger partners. Raghu, Wo, Mohan and Rao (2008) found negative stock market reaction for defendants and positive reaction for plaintiffs in patent infringement litigation in the IT industry, based on seventy-five announcements. The main factors studied in the six studies are depicted in Table 5. Authors Geyskens et al. (2002) Benbunan-Fich & Fich, (2004) Benbunan-Fich & Fich, (2005) Aggarwal et al. (2006) Lee and Lin (2006) Raghu et al. (2008)

Main Factors Studied Establishing an Internet delivery outlet Web traffic Website redesign XML standardization Merger and joint ventures of IT firms IT-related patent infringements

Event Window(s) (-5,5) (-1,1) (-1,1), (-3,3), (-5,5) (-1,0) (0,2) (-1,0)

Table 5. Other Event Studies DISCUSSION Results

Our review of forty-six event studies in IS research suggests that there is no general agreement with regard to the appropriate size of a sample and the lengths of estimation and event periods. As can be seen from tables 2 through 5, the event periods vary substantially. The focus of the investigations in most of the studies was stocks of US based companies, though the number of event studies focusing on companies in other economic regions is increasing. Two studies looked at IT investments in Australia; one study did a comparative analysis of IT investments by US and Chinese companies; and two studies dealt with e-commerce and e-services initiatives in Taiwan. Frequently, the studies using data outside the USA produced different results from those conducted within the USA. Moreover, our review confirms that stock market reaction is not very well understood. This can be seen from the often contrary results and the lack of widely accepted theory explaining stock market reactions to IT related events. Only a few of the studies attempted to base their research on existing theories such as resource-based view (Cavusoglu et al. 2004; Chatterjee et al. 2002) and the theory of absorptive capacity (Chatterjee et al. 2002). Limitations

The main limitation of our literature review is the relatively small sample of papers. In spite of the growing popularity of event studies in the field of IS, the total number of publications is still small, and thus, our conclusions are limited to the analysis of only forty-six papers. CONTRIBUTION, CONCLUSIONS, AND FUTURE RESEARCH

We believe that our literature review makes an important contribution to the body of knowledge in IS research, as it draws attention to a not yet well established, but increasingly popular research approach in this discipline and exposes gaps in the published research to date, and as such should benefit other scholars in their own work. Most importantly, our work reveals numerous opportunities for further research in this area, such as, for example, the "globalization" of IS related event studies research. As reported earlier, only five out of the forty-six papers in our review, representing three research streams, used non-US stock data, producing unique results. Thus, some future studies may simply apply event studies methodology in other existing or new research streams using stock data from different economies. Another research opportunity that has only begun to be exploited is looking at compounding market effects of multiple, concurrent events and factors. REFERENCES

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