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.

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.

COVID -19 and Indian Financial Markets: A Review

2020 ◽  
Vol 16 (02) ◽  
pp. 1-8
Author(s):  
Kamaldeep Kaur Sarna
Keyword(s):  
Financial Markets ◽  
Financial Institutions ◽  
Financial Services ◽  
Stock Markets ◽  
Global Economy ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Negative Impact ◽  
Management Strategies ◽  
The Impact

COVID-19 is aptly stated as a Black Swan event that has stifled the global economy. As coronavirus wreaked havoc, Gross Domestic Product (GDP) contracted globally, unemployment rate soared high, and economic recovery still seems a far-fetched dream. Most importantly, the pandemic has set up turbulence in the global financial markets and resulted in heightened risk elements (market risk, credit risk, bank runs etc.) across the globe. Such uncertainty and volatility has not been witnessed since the Global Financial Crisis of 2008. The spread of COVID-19 has largely eroded investors’ confidence as the stock markets neared lifetimes lows, bad loans spiked and investment values degraded. Due to this, many turned their backs on the risk-reward trade off and carted their money towards traditionally safer investments like gold. While the banking sector remains particularly vulnerable, central banks have provided extensive loan moratoriums and interest waivers. Overall, COVID-19 resulted in a short term negative impact on the financial markets in India, though it is making a way towards V-shaped recovery. In this context, the present paper attempts to identify and evaluate the impact of the pandemic on the financial markets in India. Relying on rich literature and live illustrations, the influence of COVID-19 is studied on the stock markets, banking and financial institutions, private equities, and debt funds. The paper covers several recommendations so as to bring stability in the financial markets. The suggestions include, but are not limited to, methods to regularly monitor results, establishing a robust mechanism for risk management, strategies to reduce Non-Performing Assets, continuous assessment of stress and crisis readiness of the financial institutions etc. The paper also emphasizes on enhancing the role of technology (Artificial Intelligence and Virtual/Augmented Reality) in the financial services sector to optimize the outcomes and set the path towards recovery.

scholarly journals Taxing impact of terrorism on global economic openness of developed and developing countries

2018 ◽  
Vol 68 (3) ◽  
pp. 311-335
Author(s):  
Abubakr Saeed ◽  
Yuhua Ding ◽  
Shawkat Hammoudeh ◽  
Ishtiaq Ahmad
Keyword(s):  
Developing Countries ◽  
Negative Impact ◽  
Developed Countries ◽  
Terrorist Attacks ◽  
Economic Openness ◽  
Significant Negative Impact ◽  
Military Expenditures ◽  
The Developed Countries ◽  
The Impact ◽  
The Relationship

This study examines the relationship between terrorism and economic openness that takes into account both the number and intensity of terrorist incidents and the impact of government military expenditures on trade-GDP and foreign direct investment-GDP ratios for both developed and developing countries. It uses the dynamic GMM method to account for endogeneity in the variables. Deaths caused by terrorism have a significant negative impact on FDI flows, and the number of terrorist attacks is also found to be significant in hampering the countries’ ability to trade with other nations. The study also demonstrates that the developing countries exhibit almost similar results to our main analysis. The developed countries exhibit a negative impact of terrorism, but the regression results are not significant.

scholarly journals The Protection of the Rights to Life and Health in Emergencies: An Examination of the Handling of Covid-19 Pandemic in Nigeria

2021 ◽  
Vol 8 (2) ◽  
pp. 259-279
Author(s):  
BONTUR LUGARD Sunday
Keyword(s):  
Human Rights ◽  
World War Ii ◽  
Law Enforcement ◽  
Video Camera ◽  
Law Enforcement Agencies ◽  
Continuous Training ◽  
Moral Duties ◽  
Entire Society ◽  
The Right ◽  
The Impact

The Coronavirus Disease (COVID-19) is inarguably the most disrupting occurrence in human affairs since the World War II. This virus left governments, communities and systems with the legal, social and moral duties to protect from its impacts. However, some of the approaches adopted towards protecting the victims, potential victims, and the entire society, especially in Nigeria, caused more harm than the disease itself. This work reviews the impact of the curtailment measures adopted by governments in Nigeria and their adverse bearing on human rights, especially the right to life as a sacrosanct and universal right. It further examines how law enforcement agencies’ operations - within the confines of the institutional and international best practices - their non-adherence to the rules of engagement or principles of ethical operations have resulted in the violation of human rights, rather than protecting them. It also analyses the impact of the virus on the right to health and access to medical facilities in times of emergencies in Nigeria and concludes that both rights were either violated or not realized within the context of the ‘war’ against the COVID-19 pandemic. This work advocates for the continuous training on human rights responsibilities of law enforcement agents, a more rigorous recruitment process with a minimum qualification from school certificate to ordinary national diploma, the use of video camera in the course of operations, among others that would help safeguard the rights of citizens in times of emergencies like the COVID-19.

scholarly journals Criminal networks analysis in missing data scenarios through graph distances

PLoS ONE ◽  
2021 ◽  
Vol 16 (8) ◽  
pp. e0255067
Author(s):  
Annamaria Ficara ◽  
Lucia Cavallaro ◽  
Francesco Curreri ◽  
Giacomo Fiumara ◽  
Pasquale De Meo ◽  
...  
Keyword(s):  
Law Enforcement ◽  
Incomplete Data ◽  
Law Enforcement Agencies ◽  
Criminal Networks ◽  
Criminal Organizations ◽  
Edge Removal ◽  
Graph Distances ◽  
Intentional Deception ◽  
Node Removal ◽  
The Impact

Data collected in criminal investigations may suffer from issues like: (i) incompleteness, due to the covert nature of criminal organizations; (ii) incorrectness, caused by either unintentional data collection errors or intentional deception by criminals; (iii) inconsistency, when the same information is collected into law enforcement databases multiple times, or in different formats. In this paper we analyze nine real criminal networks of different nature (i.e., Mafia networks, criminal street gangs and terrorist organizations) in order to quantify the impact of incomplete data, and to determine which network type is most affected by it. The networks are firstly pruned using two specific methods: (i) random edge removal, simulating the scenario in which the Law Enforcement Agencies fail to intercept some calls, or to spot sporadic meetings among suspects; (ii) node removal, modeling the situation in which some suspects cannot be intercepted or investigated. Finally we compute spectral distances (i.e., Adjacency, Laplacian and normalized Laplacian Spectral Distances) and matrix distances (i.e., Root Euclidean Distance) between the complete and pruned networks, which we compare using statistical analysis. Our investigation identifies two main features: first, the overall understanding of the criminal networks remains high even with incomplete data on criminal interactions (i.e., when 10% of edges are removed); second, removing even a small fraction of suspects not investigated (i.e., 2% of nodes are removed) may lead to significant misinterpretation of the overall network.

scholarly journals THE PLACE OF ADMINISTRATIVE LAW STANDARDS IN THE LEGAL SYSTEM PRINCIPLES OF INTERACTION OF JUDICIAL EXPERT INSTITUTIONS WITH LAW ENFORCEMENT AUTHORITIES

2020 ◽  
pp. 258-264
Author(s):  
А. О. Полянський
Keyword(s):  
Law Enforcement ◽  
Public Relations ◽  
Legal Status ◽  
Legal Regulation ◽  
Administrative Law ◽  
Legal Basis ◽  
Law Enforcement Agencies ◽  
Legal Principles ◽  
Forensic Institutions ◽  
The Impact

The relevance of the article is that the effectiveness and efficiency of interaction between forensic agencies and law enforcement agencies depends on many factors, one of which is a properly "constructed" system of legal acts. At the same time, the special nature of the interaction of these entities, the attraction of its content to the administrative and legal sphere, as well as the specifics of forensic institutions and law enforcement agencies in general necessitates a detailed review of legal principles in this area and determining the place of administrative and legal regulation. The purpose of the article is to establish a system of legal bases for the interaction of forensic institutions with law enforcement agencies, as well as to determine the place of administrative and legal regulation among them. It is established that the legal basis of interaction of forensic institutions with law enforcement agencies is a system of regulations and their provisions governing the legal status of forensic institutions and law enforcement agencies, as well as the content and procedure of interaction of these entities. It is proved that administrative-legal regulation is a type of branch of the general-legal category of legal regulation, which occurs with the help of administrative law and determines the impact of law on public relations of a special nature arising from the activities of public administration. That is, we are talking about the relationship of power and management influence that prevails in the work of public authorities, local governments and so on. This is a purposeful, comprehensive, streamlining impact of law on public relations in the sphere of government, which occurs through the rules of administrative law, which are part of the system of legal principles outlined above. It is emphasized that the legal basis for the interaction of forensic institutions and law enforcement agencies have an administrative and legal basis, which is expressed in a large number of rules of administrative law, enshrined in regulations of various legal force. This situation is due to the fact that the norms of this branch of law determine: the administrative and legal status of forensic institutions and law enforcement agencies; functions, powers and tasks assigned to law enforcement agencies and forensic institutions; mechanisms of interaction of forensic institutions and law enforcement agencies in performing their functions defined by law; organizational and practical goals of this interaction; etc.

Cloudy days ahead: Cross-border evidence collection and its impact on the rights of EU citizens

2019 ◽  
Vol 10 (3) ◽  
pp. 227-250
Author(s):  
Lawrence Siry
Keyword(s):  
Law Enforcement ◽  
Cloud Storage ◽  
The United States ◽  
Legal Assistance ◽  
The European Union ◽  
Law Enforcement Agencies ◽  
Cross Border ◽  
Use Of Data ◽  
Evidence Collection ◽  
The Impact

In recent years, the development of cloud storage and the ease of cross-border communication have rendered the area of evidence collection particularly difficult for law enforcement agencies (LEAs), courts and academics. Evidence related to a criminal act in one jurisdiction might be stored in a different jurisdiction. Often it is not even clear in which jurisdiction the relevant data are, and at times the data may be spread over multiple jurisdictions. The traditional rules related to cross-border evidence collection, the mutual legal assistance treaty (MLAT) regimes, have proved to be out-dated, cumbersome and inefficient, as they were suited for a time when the seeking of cross-border evidence was more infrequent. In order to tackle this problem, the United States has enacted the Clarifying Lawful Overseas Use of Data Act, which gives extraterritorial e-evidence collection powers to US courts. Simultaneously, the European Union (EU) has proposed similar sweeping changes which would allow for LEAs in Member States to preserve and collect cloud-based evidence outside of the MLAT system. This article critically evaluates these developments from the perspective of the impact on the rights of EU citizens.

Herding behavior in Islamic GCC stock market: a daily analysis

2018 ◽  
Vol 11 (2) ◽  
pp. 182-193 ◽  
Author(s):  
Mustapha Chaffai ◽  
Imed Medhioub
Keyword(s):  
Stock Market ◽  
Quantile Regression ◽  
Financial Markets ◽  
Stock Returns ◽  
Stock Markets ◽  
Content Type ◽  
Quantile Regression Analysis ◽  
Herd Behaviour ◽  
The Impact ◽  
Quantile Regression Method

Purpose This paper aims to examine the presence of herd behaviour in the Islamic Gulf Cooperation Council (GCC) stock markets following the methodology given by Chiang and Zheng (2010). Generalized auto regressive conditional heteroskedasticity (GARCH)-type models and quantile regression analysis are used and applied to daily data ranging from 3 January 2010 to 28 July 2016. Results show evidence of herd behaviour in the GCC stock markets. When the data are divided into down and up market periods, herd information is found to be statistically significant and negative during upward market periods only. These results are similar to those reported in some emerging markets such as China, Japan and Hong Kong, where stock returns perform more similarly during down market periods and differently during rising markets. Design/methodology/approach The authors present a brief literature on herd behaviour. Second, the authors provide some specificity of the GCC Islamic stock market, followed by the presentation of the methodology and the data, results and their interpretation. Findings The authors take into account the difference existing in market conditions and find evidence of herding behaviour during rising markets only for GCC markets. This result was confirmed after using the quantile regression method, as evidence of herding was observed only in highly extreme periods. Stock returns perform more similarly when market is down in Islamic GCC stock market. Research limitations/implications The research limitation consists in the fact that this work can be extended to compare the GCC stock markets with other markets in Asia such as Malaysia and Indonesia. Practical implications The principal implication consists in the fact that herding behaviour is limited in the GCC markets and Islamic finance can have an important contribution to moderate the behaviour in the financial markets. Social implications The work focusses on the role of ethics in the financial markets and their ability to reduce the impact of behavioural biases. Originality/value The paper studies the behaviour of investors in the Islamic financial markets and gives an idea about the importance of the behaviour in this particular market regarding its characteristics.

scholarly journals Application of modified GARCH methodology: Developed financial markets versus emerging financial markets

2020 ◽  
Vol 15 (2) ◽  
pp. 241-261
Author(s):  
Nenad Penezić ◽  
Goran Anđelić ◽  
Marko Milošević ◽  
Vilmoš Tot
Keyword(s):  
Developing Countries ◽  
Financial Markets ◽  
Interest Rates ◽  
Global Financial Crisis ◽  
Investment Decision ◽  
Academic Community ◽  
Special Focus ◽  
Government Bonds ◽  
Research Results ◽  
The Impact

The subject of this research is to analyze and test the modified GARCH methodology in terms of quantifying the impact of inflation rates, interest rates on government bonds, reference interest rates, and exchange rates on daily rates of return on investment activities in the observed financial markets of North America, Serbia and Croatia. The aim of the research, i.e. a special focus in the research, is to compare the obtained results between the developed financial markets and the financial markets of developing countries, as well as to test the modified GARCH methodology in the observed financial markets. The key indicators in the research, presumed to affect the daily return rates, were the following: inflation rate, interest rates on government bonds, reference interest rate and exchange rate. The time period covered by the research is from 2005 to 2017, where the width of the research time horizon allows testing the modified GARCH methodology in the periods before, during and after the global financial crisis. In addition to the use of modified GARCH econometric models, the research methodology includes the use of AIC, SIC and HQC (Akaike, Schwarz and Hannan-Quinn) criteria for selecting the best models, as well as the appropriate tests that are suitable for and/or adapted to the specific characteristics of financial markets of both developed and developing countries. The research results confirm the role and importance of the modified GARCH methodology for effective investment risk quantification in developed financial markets versus the financial markets of developing countries. In this sense, the obtained research results will be useful to both the academic community and the professional public in the context of investment decision making.

Sign in / Sign up

Export Citation Format

Share Document