
ESTIMATION METHOD 249
results for several years to reflect a markdown of some junk securities in its portfolio….
(The Wall Street Journal, March 2, 1993, B4)
Complete data could be obtained on a sample of n = 13 informal investiga-
tions, n = 97 formal investigations, n = 28 lawsuit filings, and n = 24 settlements.
Information effects are measured and reported for all these n = 162 law enforce-
ment actions.
3
XII. ESTIMATION METHOD
The event-study methodology of James (1987) is used to obtain estimates of
abnormal stock returns surrounding announcements in The Wall Street Journal
concerning various enforcement actions taken by the DOJ, FTC, and SEC. The ...