Resumen de Launching a corporate website and market efficiency

Daphna Schwarts-Asher, Uri Ben-Zion, Shaul Gabbay

• Using an event study analysis, this paper investigates the effect of launching a website on corporate stock returns. We find that for domestic firms (traded in the US) the effect on returns is not statistically significant. However, for foreign stocks traded on US capital markets the effect is generally positive and statistically significant. For such firms, which are smaller than their US counterparts, the Internet contributes to their exposure and increases their profit prospects.