Journal
FINANCE RESEARCH LETTERS
Volume 18, Issue -, Pages 306-310Publisher
ACADEMIC PRESS INC ELSEVIER SCIENCE
DOI: 10.1016/j.frl.2016.05.003
Keywords
Terrorist attack; Efficient markets; Airline industry
Categories
Ask authors/readers for more resources
We analyze the dynamics of airline stock prices surrounding the recent terrorist attacks in Paris and Brussels. We find that the adjustment of stock prices is consistent with the assumption of efficient capital markets. Analyzing 27 of the largest U.S., Canadian, and European airlines, we show that the terrorist attacks in Paris and Brussels had a strong short-term effect on the valuation of airline companies. However, this effect was significantly smaller following the Brussels strikes, despite the apparent direct impact of the bombings of the Brussels airport on the airline industry. Furthermore, we find that smaller, less geographically diversified, airlines are significantly less affected by the attacks than their global peers. (C) 2016 Elsevier Inc. All rights reserved.
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available