PT - JOURNAL ARTICLE AU - Eurico J. Ferreira AU - LeRoy D. Brooks AU - Eric C Girard TI - Measuring Private Equity Stock Reactions AID - 10.3905/jpe.2006.635432 DP - 2006 May 31 TA - The Journal of Private Equity PG - 73--79 VI - 9 IP - 3 4099 - https://pm-research.com/content/9/3/73.short 4100 - https://pm-research.com/content/9/3/73.full AB - This article presents preliminary evidence on the ability of an adjusted AR to enhance the materiality and significance levels in AR-based event studies. A case example of differences between the standard AR measure used in most event studies and the adjusted AR is provided. In tests of 240 equity private placements of publicly held companies between 1983 and 1996, the adjusted AR measure dominates the standard AR measure across various sample sizes. As the sample size decreases, the adjusted measure retains the ability to detect material and significant price increases while the standard AR measure's ability declines.TOPICS: Private equity, statistical methods, portfolio construction, performance measurement