Terrorist Attacks and Financial Markets

Bas Bonekamp, Tom van Veen

Research output: Working paper / PreprintWorking paper


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 languageEnglish
Publication statusPublished - Jan 2017

Publication series

SeriesCESifo Working Paper Series

JEL classifications

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


  • terrorist attacks
  • event studies
  • stock market indices

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