Abstract
In management studies, the event study method has seen some use and much misuse and misunderstanding. Nevertheless, it remains a valuable and powerful technique to study the impact of various management events and can be used over a range of sub-disciplines in the management area. Used in the way the author examines in this book, he undertakes an event study to determine whether there is a stock market reaction to a management event, showing the overall positive or negative nature of the event. A subsequent cross-sectional regression can be undertaken to dive into the factors that influence or drive this result. This chapter introduces the approach, the history, and use of the approach, and some key factors that determine the suitability for management research. Next, he explores the boundaries for when this approach can be used and the type of issues and questions that the approach may not be gainfully used to explore. Finally, he presents an overview of the volume structure and how the topics will be addressed.