Parametric & nonparametric approaches to event studies: an application to a hotel’s market value

The main objective of this paper is twofold: on the one hand, to analyse the impact that the announcement of the opening of a new hotel has on the performance of its chain by carrying out an event study, and on the other hand, to compare the results of two different approaches to this method: a parametric specification based on the autoregressive conditional heteroskedasticity models to estimate the market model, and a nonparametric approach, which implies employing Theil’s nonparametric regression technique, which in turn, leads to the so-called complete nonparametric approach to event studies. The results that the empirical application arrives at are noteworthy as, on average, the reaction to such news releases is highly positive, both approaches reaching the same level of significance. However, a word of caution must be said when one is not only interested in detecting whether the market reacts, but also in obtaining an exhaustive calculation of the abnormal returns to further examine its determining factors.

Observation of a parity oscillation in the conductance of atomic wires

Using a scanning tunnel microscope or mechanically controllable break junctions atomic contacts for Au, Pt, and Ir are pulled to form chains of atoms. We have recorded traces of conductance during the pulling process and averaged these for a large number of contacts. An oscillatory evolution of conductance is observed during the formation of the monoatomic chain suggesting a dependence on the numbers of atoms forming the chain being even or odd. This behavior is not only observed for the monovalent metal Au, as was predicted, but is also found for the other chain-forming metals, suggesting it to be a universal feature of atomic wires.