The efficient Market Hypothesis (EMH), also known as the efficient market theory, states that share prices indicate that all the information and consistent alpha generation are unattainable. This indicates that stock prices are always at their specific fair value whenever exchanges occur, hence impossible for stockholders to buy undervalued stocks or sell them at increased prices (Hsu and Wu, 2019). Therefore, the stock owners cannot outperform the entire market, including using expert stock choosing methods or timing. Thus, investors can get higher returns by buying riskier bonds. Prof. Eugene Fama won the prize for formulating the theory, which he supported with all possible facts. However, Prof. Richard Thaler also won the prize for successfully criticizing the idea (Sharma, 2016). This was possible because it was a theory in development, subject to scholarly analysis for the idea’s existence. Therefore, the theory is valid, though it is still in its evolving phase, and will settle when experts have revised it and come to the point of agreement concerning the hypothesis. An event study refers to the experiential analysis that examines the effects of a stimulant occurrence or contingent incident on a security’s value, such as the stock of an organization. Such a study exposes the crucial information regarding how security can react to any particular event. A security’s value can be affected when the company fills for protection against bankruptcy, merger announcements, or an organization defaults on its obligations to repay debts (Bash and Alsaifi, 2019). Event study helps determine how a particular specific event happening within a firm can affect its stability by assessing its impact on its stock. Therefore, using the same statistical tool to analyze an event or a series of similar events, an analyst can develop a model that can help forecast stocks’ responses to any particular event. Even though events analysis can result in effective models, which can predict future stock prices, sometimes, analysts can get abnormal returns. An abnormal return refers to the unusual large profits or losses, which result from any specific portfolio invested over a given time (Habibi et al ., 2020). Therefore, instead of giving an acceptable return, such an analysis yields a diverging performance, which is inconsistent with the return rate. Such returns can point to systematic issues within the organization’s financial operations, such as fraud or data manipulation (Lebelle et al ., 2020). However, such returns should be mistaken for being excess returns or alpha, which results from effective investment management. An abnormal return can be calculated as follows: Er = Rf + β (Rm – Rf) Where Er represents the security’s expected return, Rf represents the risk-free rate, which is the savings deposit rate, β symbolizes the risk coefficient of the security compared to the market, and Rm= Return on the market. I have studied different behavioral critiques, which include irrational behavior. Financial works of literature indicate investor irrationality as one of the main aspects of financial behaviors. Irrational investors are subjugated by their emotions and thus are controlled by their animal spirits. Many investors fail as a result of their baser instinct and their overly speculative nature. Therefore, most lenders are subject to several cognitive predispositions and defec