Event Studies in Logistics Research

Abstract

The event study method allows researchers to examine the importance of an event to firms based on the magnitude and direction of abnormal returns, and then use these results in a cross-sectional regression to understand which managerial decisions may affect these outcomes. While the method has been heavily used in some disciplines, in-management research and logistics research, in particular, the method remains little used and is often used with little thought to key assumptions and design considerations. This chapter aims to provide an overview of the method for logistics and supply chain researchers with a focus on developing the capability to design an effective study and to evaluate research articles to determine possible weaknesses.