An analysis of alternative methods for measuring long-run performance: An application to share repurchase announcements

Abstract

Measuring the long-run financial performance around and subsequent to specific corporate announcements is important and of special interest to researchers and practitioners alike. A variety of methods have been developed and applied to estimate these valuation effects but so far there is no general consensus on the best approach from a financial and statistical perspective. The objective of our research is to analyze and compare empirically alternative methods using 144 repurchase announcements in Germany for the period from 2000 to 2006. Overall, we find that the methodology used strongly influences the results. © Springer-Verlag Berlin Heidelberg 2010.