Hello, I hope I am hoping for you advice.
I am analysing the aggregated abnormal returns for N securities, which requires the assumption that the event windows of the included securities do not overlap in calendar time. However, I do not really understand what it really means? Is there any simpler way to find out when the event windows overlap?
Does that mean that length of the event window must be the same across all firms that went through m&a?? Or that we should exclude the firms that had m&a at the same time or data??
And if it happens to overlap how could I potentially correct it?
Thank you in advance.
It's simple.
First give the name to the windows. Let's say w1 and w2. Based on the arithmetic calculations, you can easily find that whether it will overlap or not.
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