Hi,

I have a question about the specific multi-factor models that could be applied to analyse the returns on tech sector stocks (M&A event study). I was wondering whether there are specific risk factors that go into multi-factor models to explain the returns on tech or high tech sectors.

So far, I have found that M&A between firms in the same high-tech industry" can explain the abnormal returns, another one is "size of the transaction".

The other models I considered were the general FF3, FFM4 models with size, value and momentum factors. However, do people (practitioners/academics) adjust them to analyse the performance of specific industries in event studies like m&a??

Thank you,

Nikol