Lovell/Freeman 1994

Lovell and Freeman's 1994 study examined how financial markets respond to corporate events, such as mergers or earnings announcements. They focused on measuring stock price fluctuations around these events to assess market efficiency—how quickly and accurately prices incorporate new information. Their research found that markets generally respond rapidly, reflecting new information within short periods, but some delays or inefficiencies remain. This helped improve understanding of market behavior and the importance of timely, transparent information dissemination for investors and regulators.