The 11/13 Paris terrorist attacks and stock prices: The case of the international defense industry

2021 ◽

Vol 22 (4) ◽

pp. 923-939

Author(s):

Ji-Hong Jeon

Keyword(s):

Quantile Regression ◽

Stock Prices ◽

Stock Markets ◽

Disease Outbreaks ◽

Terrorist Attacks ◽

Policy Uncertainty ◽

Regression Approach ◽

Using Data ◽

The Impact ◽

Global Travel

This study explores the impact of tourism uncertainty, including economic policy uncertainty (EPU) and travel crises arising from issues such as terrorism and disease outbreaks, on airline stock markets in Korea. Airline stock prices are particularly affected by tourism uncertainty. Using data from 2001–2018 and events influencing tourism uncertainty such as the 9/11 terrorist attacks and severe acute respiratory syndrome, quantile regression approach reveals how EPU influences airline stock prices in Korea during three market phases – bearish, normal, and bullish. EPU and travel crises negatively affect airline stock prices in Korea. Specifically, we document that higher EPU and more global travel crises lead to deeper reductions in stock prices in bullish markets. These results provide implications and insights for airline investors, stakeholders, and organizations concerned about the influence of tourism uncertainty on airline stock prices in Korea.

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Measuring The Economic Effects Of Political Events: War And The U.S. Defense Industry

Journal of Applied Business Research (JABR) ◽

10.19030/jabr.v10i1.5963 ◽

2011 ◽

Vol 10 (1) ◽

pp. 57 ◽

Cited By ~ 5

Author(s):

James E. McDonald ◽

Walter R. Kendall

Keyword(s):

Stock Prices ◽

Prediction Error ◽

Stock Price ◽

Defense Industry ◽

Economic Effects ◽

Military Force ◽

Positive Effects ◽

Political Events ◽

Before And After ◽

The U.S

<span>The authors make use of the Cumulative Prediction Error (CPE) technique to examine the effects of political events in the stock market. The stock price behaviour of sixteen U.S. defense industry firms was examined before and after seventeen unforeseeable political events involving military force. The authors found that significantly positive effects on stock prices appear to occur as a result of military actions. The nature and use of the CPE technique is discussed.</span>

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The Impact of Major Terrorist Attacks on Stock Prices: The Case of Karachi Stock Exchange

Asian Economic and Financial Review ◽

10.18488/journal.aefr.2018.83.394.405 ◽

2018 ◽

Vol 8 (3) ◽

pp. 394-405 ◽

Cited By ~ 1

Author(s):

Seema Rehman ◽

Jameel Ahmed Khilji ◽

Muhammad Kashif ◽

Raja Rehan

Keyword(s):

Stock Prices ◽

Stock Exchange ◽

Terrorist Attacks ◽

The Impact

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Acts Of Terrorism And Their Impacts On Stock Index Returns And Volatility: The Cases Of The Karachi And Tehran Stock Exchanges

International Business & Economics Research Journal (IBER) ◽

10.19030/iber.v8i12.3199 ◽

2011 ◽

Vol 8 (12) ◽

Cited By ~ 2

Author(s):

Anh Phuong Nguyen ◽

Carl E. Enomoto

Keyword(s):

Stock Returns ◽

Stock Prices ◽

The Other ◽

Stock Index ◽

Financial Capital ◽

Terrorist Attacks ◽

Stock Exchanges ◽

The World ◽

Investor Reaction ◽

Stock Index Returns

Terrorist attacks throughout the world have disrupted the flow of financial capital between nations and affected incomes, company profits and stock prices. This paper uses a GARCH(1,1) model to determine how these attacks have affected two specific stock markets: one in Pakistan and the other in Iran. It was found that significant, but different, stock index return shifts and changes in volatility occurred in the two markets. These effects on stock returns have important implications for the economies involved and provide information about investor reaction to terrorism.

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National and Transnational Impacts of Terror on Hotel Stock Prices

Polytechnic Journal ◽

10.25156/ptj.v10n1y2020.pp163-169 ◽

2020 ◽

Vol 10 (1) ◽

pp. 163-169

Author(s):

Dlawar M. Hadi ◽

Farman M. Ahmed

Keyword(s):

Event Study ◽

Financial Market ◽

Stock Prices ◽

Terrorist Attacks ◽

Sign Test ◽

Study Analysis ◽

Estimation Techniques ◽

Tourist Destinations ◽

Hotel Managers

This study aims to explore the sensitivity of hotel stock prices to national and transnational terrorist incidents that occur at the world’s top five tourist destinations. Event study analysis and the generalized sign test are the estimation techniques used in this study. Overall, hotel stocks were found to react differently to terrorist activities. U.S. hotel stocks were the most affected, and French hotel stocks were the least affected by domestic terrorist attacks. However, U.K. hotel stocks were the most influenced and Thai hotel stocks were the least influenced by transnational terrorist incidents. Based on the overall findings, several diversification, hedging, and speculation strategies are proposed for mitigating the effects of these influences to financial market stakeholders and hotel managers. This study recommends further studies to be conducted including various sectors to reveal how different sectors react to terrorist activities.

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