Corporate Events’ Effect on Stock Returns : Evidence from Athens Stock Exchange

This study examines firms' stock returns' behaviour, when they announce corporate events such as management change, collaborations and stock repurchases. It examines how those events are portrayed in firms' stock returns. The methodologies used are event study analysis and bootstrap. Companies selected belong to eight different sectors of Athens Stock Exchange with different market value in order to get a more general picture that does not only represent one sector which can be influenced individually by accidental factors. The sample constitutes forty firms listed in Athens Stock Exchange. Results indicate that corporate events' impact is important and a key for enterprises to follow new challenges and create financial value. Overall, this paper provides evidence on the impact of corporate governance on stock returns in Greece. The implication is that corporate events create financial value