Printer Friendly
Dictionary, Encyclopedia and Thesaurus - The Free Dictionary
3,898,125,644 visitors served.
forum Join the Word of the Day Mailing List For webmasters
?
Dictionary/
thesaurus
Medical
dictionary
Legal
dictionary
Financial
dictionary
Acronyms
 
Idioms
Encyclopedia
Wikipedia
encyclopedia
?

Cumulative Abnormal Return
(redirected from Cumulative Abnormal Returns)

   Also found in: Wikipedia 0.01 sec.
Cumulative abnormal return (CAR)
Sum of the differences between the expected return on a stock (systematic risk multiplied by the realized market return) and the actual return often used to evaluate the impact of news on a stock price.

Cumulative Abnormal Return
In stocks, the sum of all the differences between the expected returns and the actual returns up to a given point in time. Since the expected return is computed by an asset pricing model, the cumulative abnormal return may be used to determine how accurate the model is. More often, it is used to investigate the affect extraneous events have on stock prices.


Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content.
?Page tools
Printer friendly
Cite / link
Feedback
Add definition
Mentioned in?  References in periodicals archive?   Financial browser?   Full browser?
No references found
 
Cumulative Abnormal Returns to Acquiring Firms by Transaction Country/Country Group and Payment Method The sample includes all acquisitions of listed targets reported in the Thomson Financial SDC global mergers and acquisitions database from 1990 to 2007 that meet the criteria described in Table I and that have complete method of payment data, are domestic, and involve public acquirers.
Finally, the cumulative abnormal returns associated with Moody's downgrades are approximately one-half of the cumulative abnormal returns associated with either of the other two rating agencies.
The Cumulative Abnormal Returns over a sample of N firms are computed as follows: CART1, T2 = t = T1, T2 [SEGMA] ARit [FIGURE 2 OMITTED] Statistical Significance of Abnormal Returns T-statistics were used to test the significance of the cumulative abnormal returns.
 
 
 
Financial Dictionary
?

Terms of Use | Privacy policy | Feedback | Advertise with Us | Copyright © 2012 Farlex, Inc.
Disclaimer
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.