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This dissertation was written as part of the MSc in Banking and Finance at the International Hellenic University. This paper examines the daily abnormal stock returns when companies announce their earnings by using an event study methodology. Earnings announcements release useful information for the stock markets. It was used 130 companies from FTSE 250 Index of London Stock Exchange. Abnormal and cumulative abnormal returns are estimated for particular event windows around companies’ earnings announcements. Abnormal returns were calculated by a Market Model. It was found that significant abnormal price reaction around earnings announcements contain negative information value. The negative abnormal performance indicates that FTSE 250 does not react efficiently for the period 2007-2017. Significant financial events have occurred under this investigation period. Financial crisis and Brexit were the key parts of markets volatility and earnings uncertainty worldwide. Moreover, the aforementioned global events were the main reason for choosing FTSE 250 Index as it offers a reliable representation of British economy. Overall, the results showed no evidence of positive price reaction around announcement date and period, respectively. There is clear evidence that negative abnormal returns are occurred for stocks in London Stock Exchange after the earnings announcements.