Unexpected Turbulence: An Event Study of President Obama\u27s June 29, 2011 Press Conference and Its Effect on Aircraft Manufacturers

On June 29, 2011, President Barack Obama held a press conference regarding the nation\u27s budget deficit. During the conference, President Obama mentioned corporate jet owners six times, criticizing their desire to maintain an accelerated depreciation tax break. The President\u27s comments were met with strong criticism from aircraft manufacturers and members of the aviation community. Based on the underlying assumption that new information is rapidly incorporated into stock prices, the press conference likely had a negative impact on the stock returns of aircraft and aircraft parts manufacturers. This paper uses a financial events study to determine whether or not the press conference significantly hurt the stock prices of aircraft manufacturers