easily be implemented with MS Excel, event studies covering multiple events need to be built using statistical software packages (e.g., STATA, Matlab). Besides of these multi-use tools, there are solutions tailored to conducting event study analyses (e.g., Eventus, EventStudyTools). Application to merger analysis The logic behind the event study methodology (within the specific context of mergers) is explained in Warren-Boulton and Dalkir (2001): Investors in financial markets bet their dollars on whether a merger will raise or lower prices. A merger that raises market prices will benefit both the merging parties and their rivals and thus raise the prices for all their shares. Conversely, the financial community may expect the efficiencies from the merger to be sufficiently large to drive down prices. In this case, the share values of the merging firms’ rivals fall as the probability of the merger goes up. Thus, evidence from financial markets can be used to predict market price effects when significant merger-related events have taken place. Warren-Boulton and Dalkir (2001) apply their event-probability methodology to the proposed merger between Staples, Inc. and Office Depot (1996), which was challenged by the Federal Trade Commission and eventually withdrawn. Findings Warren-Boulton and Dalkir (2001) find highly significant returns to the only rival firm in the relevant market. Based on these returns, they are able to estimate the price effect of the merger in the product market which is highly consistent with the estimates of the likely price increase from other independent sources. Application in litigation The results of event studies have been accepted as evidence in litigation in US, in the quantification of damages in cases relating to securities fraud. See also Post earnings announcement drift, an anomaly found in event studies of earnings announcements CRSP, database commonly used in event studies References McGuckin, R. H., F. R. Warren-Boulton, and P. Waldstein. “The Use of Stock Market Returns in Antitrust Analysis of Mergers,” Review of Industrial Organization Vol. 7 (1992). https://www.jstor.org/stable/41798368 McWilliams, A. and Siegel, D. "Event studies in management research: Theoretical and empirical issues" Academy of Management Journal, Vol. 40, No. 3, (1997) https://www.jstor.org/stable/257056 Valuation (finance)