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That depends on how the effect is being measured - if the price growth is measured from the point where the CEO is appointed publicly - then you are right. But
by zby 8y ago
That depends on how the effect is being measured - if the price growth is measured from the point where the CEO is appointed publicly - then you are right. But if they start from the moment before the announcement - then there would be no way to arbitrage the effect away. The interesting thing to do would be to measure the effect of the announcement itself.
- darawk 8y agoYa, I agree. However, i'm pretty sure they're doing it from the moment of appointment, not the moment of announcement. They don't call it out specifically in the article, but i'm familiar with the datasets they're using, and I don't believe announcement time is in there. Though it's certainly possible that they have data I haven't seen.