Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/329097 
Year of Publication: 
2024
Citation: 
[Journal:] Economies [ISSN:] 2227-7099 [Volume:] 12 [Issue:] 7 [Article No.:] 171 [Year:] 2024 [Pages:] 1-11
Publisher: 
MDPI, Basel
Abstract: 
This paper examines the market reaction to the European bank stress test announcement and results release events. Using event study methodology (calculating abnormal returns on a three-day period around the event dates), we find that the market reacts differently between the announcement event and the results release event. We also show that the market seems to positively overreact one day before each event, and that this positive reaction is either fully or partially reversed one day after the event. We thus conclude that researchers should consider both events when exploring the market reaction to stress-testing exercises.
Subjects: 
Central Banks
European banks
event-study methodology
stock markets
stress test announcements
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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