Terrorist Attacks and Financial Markets

Bas Bonekamp; Tom van Veen

Terrorist Attacks and Financial Markets

Macro, International & Labour Economics

Research output: Working paper / Preprint › Working paper

Abstract

This paper investigates the magnitude and the duration of the effect of a terrorist attack on stock market indices. We investigate the impact of New York (2001), Madrid (2004), London (2005), Boston (2013), Paris (2015), Brussels (2016), Nice (2016) and Berlin(2016) on the stock indices of the USA (S&P), Japan (NIKKEI), Germany (DAX), Spain (IBEX), UK (FTSE), France (CAC) and the Euronext Index (BEL). We use both a graphical analysis and an event study methodology to assess the effect of terrorist attacks on stock market indices. We conclude that both the magnitude and the duration of the effect are moderate and have diminished over the years.

Original language	English
Publisher	CESifo
Publication status	Published - Jan 2017

Publication series

Series	CESifo Working Paper Series
Number	6324

JEL classifications

g10 - General Financial Markets: General (includes Measurement and Data)
g14 - "Information and Market Efficiency; Event Studies"
g15 - International Financial Markets

Keywords

terrorist attacks
event studies
stock market indices

Access to Document

https://www.cesifo-group.de/DocDL/cesifo1_wp6324.pdf

Cite this

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