Across the four events, firms that announce a corporate event after the release of good news earn higher long-run abnormal returns than firms an- nouncing the event after the release of bad news. On balance, our results are most consistent with the underreaction model. Investors appear to underreact to prior information as well as to information conveyed by the event, leading to the different patterns, return continuations and return reversals, documented in long-horizon returns. We find no support for the overreaction hypothesis using any testing technique.