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Event Studies and the Analysis of Antitrust

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  • Michael Cichello
  • Douglas Lamdin

Abstract

A standard tool in economics and finance is the event study in which one examines the impact of an event on stock returns. While hundreds of such studies have been published, the concern here is with a small subset: the use of event studies to examine antitrust issues. After a brief review of the event study technique, we provide a review of the literature that is the nexus of event studies and antitrust. The goal is to not only chronicle the development of this literature and highlight the major findings, but also to comment on important issues concerning implementation of this research method and the interpretation of the results.

Suggested Citation

  • Michael Cichello & Douglas Lamdin, 2006. "Event Studies and the Analysis of Antitrust," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 13(2), pages 229-245.
    • Handle: RePEc:taf:ijecbs:v:13:y:2006:i:2:p:229-245
    DOI: 10.1080/13571510600784557
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    Cited by:

    1. George Ford & John Jackson & Sarah Skinner, 2010. "HAC standard errors and the event study methodology: a cautionary note," Applied Economics Letters, Taylor & Francis Journals, vol. 17(12), pages 1153-1156.
    2. Steve Janner & Daniel Schmidt, 2015. "Are economically significant bond returns explained by corporate news? An examination of the German corporate bond market," Financial Markets and Portfolio Management, Springer;Swiss Society for Financial Market Research, vol. 29(3), pages 271-298, August.
    3. Ralph M. Sonenshine, 2009. "Effect of Research and Development and Market Concentration on Merger Outcomes -- An Event Study of U.S. Horizontal Mergers," Working Papers 2009-16 JEL classificatio, American University, Department of Economics.
    4. Henryk Gurgul & Milena Suliga & Tomasz Wojtowicz, 2012. "Responses of the Warsaw Stock Exchange to the U.S. macroeconomic data announcements," Managerial Economics, AGH University of Science and Technology, Faculty of Management, vol. 12, pages 41-59.
    5. Haji Ali Beigi, Maryam & Budzinski, Oliver, 2012. "On the use of event studies to evaluate economic policy decisions: A note of caution," Ilmenau Economics Discussion Papers 80, Ilmenau University of Technology, Institute of Economics.
    6. Darren Filson & Saman Olfati & Fatos Radoniqi, 2015. "Evaluating Mergers in the Presence of Dynamic Competition Using Impacts on Rivals," Journal of Law and Economics, University of Chicago Press, vol. 58(4).
    7. Panagiotis Fotis & Michael Polemis & Nikolaos Zevgolis, 2011. "Robust Event Studies for Derogation from Suspension of Concentrations in Greece during the Period 1995–2008," Journal of Industry, Competition and Trade, Springer, vol. 11(1), pages 67-89, March.
    8. Alcalde, Nuria & Powell, Ronan, 2022. "Government intervention in European mergers and acquisitions," The North American Journal of Economics and Finance, Elsevier, vol. 61(C).
    9. John Kwoka & Chengyan Gu, 2015. "Predicting Merger Outcomes: The Accuracy of Stock Market Event Studies, Market Structure Characteristics, and Agency Decisions," Journal of Law and Economics, University of Chicago Press, vol. 58(3).

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