Getting high on cannabis stock returns an event study

Zvika Afik; Tehila R. Cohen; Yaron Lahav

doi:10.1016/j.frl.2021.102226

Getting high on cannabis stock returns an event study

Zvika Afik
, Tehila R. Cohen
, Yaron Lahav

Department of Business Administration

Research output: Contribution to journal › Article › peer-review

7 Scopus citations

Abstract

We report the Israeli firms’ market value reaction to announcements on initiating Cannabis-related activity. Using Event Study analysis, we find a significant positive effect of the announcements: a cumulative average abnormal return of 64% in three days. Similar stock price reactions are observed for most firms individually, though some of these firms’ activity in Cannabis has been declarative only without any related business action.

Original language	English
Article number	102226
Journal	Finance Research Letters
Volume	46
DOIs	https://doi.org/10.1016/j.frl.2021.102226
State	Published - 1 May 2022

Keywords

Cannabis
Event-study
Firm value
Market reaction

ASJC Scopus subject areas

Finance

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10.1016/j.frl.2021.102226

Cite this

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title = "Getting high on cannabis stock returns an event study",

abstract = "We report the Israeli firms{\textquoteright} market value reaction to announcements on initiating Cannabis-related activity. Using Event Study analysis, we find a significant positive effect of the announcements: a cumulative average abnormal return of 64\% in three days. Similar stock price reactions are observed for most firms individually, though some of these firms{\textquoteright} activity in Cannabis has been declarative only without any related business action.",

keywords = "Cannabis, Event-study, Firm value, Market reaction",

author = "Zvika Afik and Cohen, \{Tehila R.\} and Yaron Lahav",

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AU - Lahav, Yaron

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N2 - We report the Israeli firms’ market value reaction to announcements on initiating Cannabis-related activity. Using Event Study analysis, we find a significant positive effect of the announcements: a cumulative average abnormal return of 64% in three days. Similar stock price reactions are observed for most firms individually, though some of these firms’ activity in Cannabis has been declarative only without any related business action.

AB - We report the Israeli firms’ market value reaction to announcements on initiating Cannabis-related activity. Using Event Study analysis, we find a significant positive effect of the announcements: a cumulative average abnormal return of 64% in three days. Similar stock price reactions are observed for most firms individually, though some of these firms’ activity in Cannabis has been declarative only without any related business action.

KW - Cannabis

KW - Event-study

KW - Firm value

KW - Market reaction

UR - https://www.scopus.com/pages/publications/85108551405

U2 - 10.1016/j.frl.2021.102226

DO - 10.1016/j.frl.2021.102226

M3 - Article

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VL - 46

JO - Finance Research Letters

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ER -

Getting high on cannabis stock returns an event study

Abstract

Keywords

ASJC Scopus subject areas

Access to Document

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