The impact of Terrorist Attacks on the World Economy. Stock Market Case Study
The present paper aims to study the impact of terrorist attacks on the economy as a whole and on several European stock markets. Thus, the event study methodology used in this paper identifies negative abnormal returns during the day of the terrorist attack, showing that investor sentiment has been...
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| Format: | Article |
| Language: | English |
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Editura ASE Bucuresti
2019-12-01
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| Series: | Romanian Economic Journal |
| Subjects: | |
| Online Access: | http://www.rejournal.eu/sites/rejournal.versatech.ro/files/articole/2019-12-17/3586/6popescuoanamadalina.pdf |
| _version_ | 1828784981238874112 |
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| author | Oana Mădălina Popescu |
| author_facet | Oana Mădălina Popescu |
| author_sort | Oana Mădălina Popescu |
| collection | DOAJ |
| description | The present paper aims to study the impact of terrorist attacks on the economy as a whole and on several European stock markets. Thus, the event study methodology used in this paper identifies negative abnormal returns during the day of the terrorist attack, showing that investor sentiment has been properly incorporated into stock market prices. Moreover, due to a highly integrated global financial system and to the contagion effect generated by the rapid dissemination of information around the world, more negative abnormal returns were identified on markets that present the same characteristics as the one directly affected by the terrorist attack. |
| first_indexed | 2024-12-11T23:41:29Z |
| format | Article |
| id | doaj.art-08e7fce1a5a64608b1c26e76675e1330 |
| institution | Directory Open Access Journal |
| issn | 1454-4296 2286-2056 |
| language | English |
| last_indexed | 2024-12-11T23:41:29Z |
| publishDate | 2019-12-01 |
| publisher | Editura ASE Bucuresti |
| record_format | Article |
| series | Romanian Economic Journal |
| spelling | doaj.art-08e7fce1a5a64608b1c26e76675e13302022-12-22T00:45:43ZengEditura ASE BucurestiRomanian Economic Journal1454-42962286-20562019-12-01XXII74100113The impact of Terrorist Attacks on the World Economy. Stock Market Case StudyOana Mădălina Popescu0Assistant professor Phd in the Department of Economic Informatics and Cybernetics, The Bucharest University of Economic Studies,Faculty of Cybernetics, Statistics and Economic Informatics, e-mail: oana.popescu@csie.ase.roThe present paper aims to study the impact of terrorist attacks on the economy as a whole and on several European stock markets. Thus, the event study methodology used in this paper identifies negative abnormal returns during the day of the terrorist attack, showing that investor sentiment has been properly incorporated into stock market prices. Moreover, due to a highly integrated global financial system and to the contagion effect generated by the rapid dissemination of information around the world, more negative abnormal returns were identified on markets that present the same characteristics as the one directly affected by the terrorist attack.http://www.rejournal.eu/sites/rejournal.versatech.ro/files/articole/2019-12-17/3586/6popescuoanamadalina.pdfterrorist attackstock market pricesevent studies |
| spellingShingle | Oana Mădălina Popescu The impact of Terrorist Attacks on the World Economy. Stock Market Case Study Romanian Economic Journal terrorist attack stock market prices event studies |
| title | The impact of Terrorist Attacks on the World Economy. Stock Market Case Study |
| title_full | The impact of Terrorist Attacks on the World Economy. Stock Market Case Study |
| title_fullStr | The impact of Terrorist Attacks on the World Economy. Stock Market Case Study |
| title_full_unstemmed | The impact of Terrorist Attacks on the World Economy. Stock Market Case Study |
| title_short | The impact of Terrorist Attacks on the World Economy. Stock Market Case Study |
| title_sort | impact of terrorist attacks on the world economy stock market case study |
| topic | terrorist attack stock market prices event studies |
| url | http://www.rejournal.eu/sites/rejournal.versatech.ro/files/articole/2019-12-17/3586/6popescuoanamadalina.pdf |
| work_keys_str_mv | AT oanamadalinapopescu theimpactofterroristattacksontheworldeconomystockmarketcasestudy AT oanamadalinapopescu impactofterroristattacksontheworldeconomystockmarketcasestudy |