WSEAS Transactions on Business and Economics


Print ISSN: 1109-9526
E-ISSN: 2224-2899

Volume 18, 2021

Notice: As of 2014 and for the forthcoming years, the publication frequency/periodicity of WSEAS Journals is adapted to the 'continuously updated' model. What this means is that instead of being separated into issues, new papers will be added on a continuous basis, allowing a more regular flow and shorter publication times. The papers will appear in reverse order, therefore the most recent one will be on top.

Volume 18, 2021


The Impact of Terrorism on Capital Markets

AUTHORS: Gualter Couto, Pedro Pimentel, Carina Roias, Rui Alexandre Castanho

DOI: 10.37394/23207.2021.18.91
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ABSTRACT: This work aims to analyze the impact of terrorism on the countries' capital markets and in the transport industry. To this end, eight recent terrorist attacks in the European Union have been studied and compared to two older similar attacks in the same region. The stock indices used in this study relate to the country's main index where the attack occurred and the FTSE Euro 100, S&P 500, and Dow Jones Singapore indices, representing the European, American, and Asian markets respectively. The results of this work are relatively discrepant since it was not possible to identify concretely the pattern of a terrorist attack on the capital markets. However, when we look at both time horizons studied, the results point to a greater capacity for market recover over time on terrorism.

KEYWORDS: Stock Indices; Terrorism; Event Study; Abnormal Returns; Capital Markets; Resilience

Wseas Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 18, 2021, Art. #91, pp. 962-968


Copyright Β© 2021 Author(s) retain the copyright of this article. This article is published under the terms of the Creative Commons Attribution License 4.0