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Impact of terrorism on stock markets: empirical evidence from the SAARC region

Author

Listed:
  • Chaudhry, Naukhaiz
  • Roubaud, David
  • Akhter, Waheed
  • Shahbaz, Muhammad

Abstract

This study investigates the impact of terrorism on stock markets in SAARC countries during 2000–2015. An event-study analysis and fixed-effect regression technique are employed to assess whether the impact of various terrorist attacks on the stock market returns of ‘highly affected’ countries differs from that of ‘less affected’ countries in the SAARC region. This study has important implications for policy-makers in relevant countries to combat terrorism and build investor confidence.

Suggested Citation

  • Chaudhry, Naukhaiz & Roubaud, David & Akhter, Waheed & Shahbaz, Muhammad, 2018. "Impact of terrorism on stock markets: empirical evidence from the SAARC region," MPRA Paper 84783, University Library of Munich, Germany, revised 19 Feb 2018.
    • Handle: RePEc:pra:mprapa:84783
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    References listed on IDEAS

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    Cited by:

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    2. Syed Abdul Rehman KHAN & Zhang YU, 2020. "The Impact of Terrorism on Economics and Logistics Performance: An Empirical Study from the Perspective of SAARC Member States," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(4), pages 99-117, December.
    3. Li, Songsong & Zhang, Weiqian & Zhang, Wei, 2023. "Dynamic time-frequency connectedness and risk spillover between geopolitical risks and natural resources," Resources Policy, Elsevier, vol. 82(C).
    4. Irshad Hira & Taib Hasniza Mohd & Hussain Haroon & Hussain Rana Yassir, 2023. "Conventional and Islamic Equity Market Reaction Towards Terrorism: Evidence Based on Target Types, Location and Islamic Calendar Months," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 33(4), pages 70-116, December.
    5. Khraiche, Maroula & Boudreau, James W. & Chowdhury, Md Shahedur R., 2023. "Geopolitical risk and stock market development," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 88(C).
    6. Zhou, Mei-Jing & Huang, Jian-Bai & Chen, Jin-Yu, 2020. "The effects of geopolitical risks on the stock dynamics of China's rare metals: A TVP-VAR analysis," Resources Policy, Elsevier, vol. 68(C).
    7. Hussain, Shahzad & Akbar, Muhammad & Malik, Qaisar & Ahmad, Tanveer & Abbas, Nasir, 2021. "Downside Systematic Risk in Pakistani Stock Market: Role of Corporate Governance, Financial Liberalization and Investor Sentiment," CAFE Working Papers 14, Centre for Accountancy, Finance and Economics (CAFE), Birmingham City Business School, Birmingham City University.
    8. Evrim Mandaci, Pınar & Azimli, Asil & Mandaci, Nazif, 2023. "The impact of geopolitical risks on connectedness among natural resource commodities: A quantile vector autoregressive approach," Resources Policy, Elsevier, vol. 85(PA).

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    More about this item

    Keywords

    event study; SAARC; stock market; terrorism;
    All these keywords.

    JEL classification:

    • A1 - General Economics and Teaching - - General Economics

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