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- Title
The impact of Terrorist Attacks on the World Economy. Stock Market Case Study.
- Authors
Popescu, Oana Mădălina
- Abstract
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.
- Subjects
STOCK exchanges; TERRORISM; ABNORMAL returns; INTERNATIONAL economic relations; MARKET prices
- Publication
Romanian Economic Journal, 2019, Issue 74, p100
- ISSN
1454-4296
- Publication type
Article