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In the Menon and Williams paper, they used an event methodology to determine the market's interpretation of a news event. Explain fully an event study

In the Menon and Williams paper, they used an event methodology to determine the market's interpretation of a news event. 

Explain fully an event study methodology?

Why is that approach appropriate for answering the questions examined by Menon and Williams? 

Why did Menon and Williams divide some of their tests into firms that had been financially distressed vs. firms that were not.  Why was this an important tactic for answering the question they addressed?

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An event study methodology is a research approach used to analyze the impact of specific events on financial markets It involves examining the stock p... blur-text-image

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