The Impact of Terrorist Attacks on International Stock Markets

2010 ◽  
Vol 16 (4) ◽  
pp. 585-598 ◽  
Author(s):  
Dirk Brounen ◽  
Jeroen Derwall
Keyword(s):  
Stock Markets ◽  
Terrorist Attacks ◽  
International Stock Markets ◽  
The Impact

Influence of Terrorist Acts on the Dynamics of World Stock Markets: Situational Analysis

2018 ◽  
Vol 2018 (1) ◽  
pp. 105-121
Author(s):  
Sergej Volodin ◽  
Andrej Mikhalev
Keyword(s):  
Developing Countries ◽  
Law Enforcement ◽  
Financial Markets ◽  
Stock Markets ◽  
Terrorist Attacks ◽  
General Nature ◽  
Situational Analysis ◽  
Law Enforcement Agencies ◽  
Terrorist Acts ◽  
The Impact

Despite the efforts of law enforcement agencies of the world’s leading countries, the influence of radical movements has become much stronger in last decades. Terrorist acts lead to a sharp destabilization in the country especially in its economy. Although the number of terrorist acts is growing, their impact on the financial markets is still barely studied. That is why the aim of this work is to define the general nature of the impact of terrorist attacks on world stock markets. For this purpose, the authors use data for nineteen countries for the period from 1988 to May 2017. The situational analysis, which is based on this data, made it possible to identify the main trends in the impact of terrorist attacks on the dynamics of market indices in developed and developing countries, and also to describe Russian specifics. The conclusions of this work can be useful to market agents as well as to the organizers of trades and regulators, for the formation of timely and correct measures to stabilize the financial system in such situations.

International stock market liquidity: a review

2016 ◽  
Vol 42 (2) ◽  
pp. 118-135 ◽  
Author(s):  
Rui Ma ◽  
Hamish D. Anderson ◽  
Ben R. Marshall
Keyword(s):  
Stock Market ◽  
Stock Markets ◽  
Market Liquidity ◽  
Short Sales ◽  
Liquidity Premium ◽  
Content Type ◽  
International Stock Markets ◽  
Stock Market Liquidity ◽  
Dark Pools ◽  
The Impact

Purpose – The purpose of this paper is to review the literature on liquidity in international stock markets, highlights differences and similarities in empirical results across existing studies, and identifies areas requiring further research. Design/methodology/approach – International cross-country studies on stock market liquidity are categorized and reviewed. Important relevant single-country studies are also discussed. Findings – Market liquidity is influenced by exchange characteristics (e.g. the presence of market makers) and regulations (e.g. short-sales constraints). The literature has identified the most appropriate liquidity measures for global research, and for emerging and frontier markets, respectively. Major empirical facts are as follows. Liquidity co-varies within and across countries. Both the liquidity level and liquidity uncertainty are priced internationally. Liquidity is positively associated with firm transparency and share issuance, and negatively related to dividends paid out. The impact of internationalization on liquidity is not universal across firms and countries. Some suggested areas for future studies include: dark pools, high-frequency trading, commonality in liquidity premium, funding liquidity, liquidity and capital structure, and liquidity and transparency. Research limitations/implications – The paper focusses on international stock markets and does not consider liquidity in international bond or foreign exchange markets. Originality/value – This paper provides a comprehensive survey of empirical studies on liquidity in international developed and emerging stock markets.

THE IMPACT OF TERRORISM ON FINANCIAL MARKETS: EVIDENCE FROM ASIA

2018 ◽  
Vol 63 (05) ◽  
pp. 1183-1204 ◽  
Author(s):  
FAHEEM ASLAM ◽  
AMIR RAFIQUE ◽  
ANEEL SALMAN ◽  
HYOUNG-GOO KANG ◽  
WAHBEEAH MOHTI
Keyword(s):  
Financial Markets ◽  
Stock Markets ◽  
Negative Impact ◽  
Target Type ◽  
Terrorist Attacks ◽  
Market Returns ◽  
Security Forces ◽  
Suicide Attacks ◽  
The Impact ◽  
Attack Type

This paper examines the impact of 410 terrorist attacks on the performance of five Asian stock markets. The empirical findings indicate that terrorism has a significant impact on the stock markets. Furthermore, the magnitude of these effects varies with respect to country, attack type, target type and severity of the attacks. In target type, terrorist attacks on business sector and security forces are particularly destructive for the stock markets. Likewise, in attack type, suicide attacks and bomb blasts particularly generate a significant downward movement in the stock markets. Furthermore, the more severe attacks have larger negative impact on market returns.

scholarly journals THE IMPACT OF TOURISM UNCERTAINTY ON AIRLINE STOCK MARKETS IN KOREA: A QUANTILE REGRESSION APPROACH

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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