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Natural Disasters — Blessings In Disguise?

Author

Listed:
  • HARDJO KOERNIADI

    (Department of Finance, Faculty of Business and Law, Auckland University of Technology, 42 Wakefield Street, Auckland 1010, New Zealand)

  • CHANDRASEKHAR KRISHNAMURTI

    (University of Southern Queensland, Queensland, Australia)

  • ALIREZA TOURANI-RAD

    (Auckland University of Technology, Auckland, New Zealand)

Abstract

This study examines the impact of natural disasters on stock market returns and on industries that are likely to be affected by such disasters. We find that different natural disasters have different effects on stock markets and industries. Our evidence suggests that while earthquakes, hurricanes and tornadoes could negatively affect market returns several weeks after the events, other disasters such as floods, tsunamis and volcanic eruptions have limited impact on stock markets. We also find that construction and materials industry is generally positively affected by natural disasters but non-life and travel industries are likely to suffer negative effects.

Suggested Citation

  • Hardjo Koerniadi & Chandrasekhar Krishnamurti & Alireza Tourani-Rad, 2016. "Natural Disasters — Blessings In Disguise?," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 61(01), pages 1-17, March.
    • Handle: RePEc:wsi:serxxx:v:61:y:2016:i:01:n:s021759081640004x
    DOI: 10.1142/S021759081640004X
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