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

Author

Listed:
  • Naukhaiz Chaudhry

    (University of Central Punjab)

  • David Roubaud

    (MRM - Montpellier Research in Management - UPVM - Université Paul-Valéry - Montpellier 3 - UPVD - Université de Perpignan Via Domitia - Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School - UM - Université de Montpellier)

  • Waheed Akhter

    (CIIT - COMSATS Institute of Information Technology)

  • Muhammad Shahbaz

    (MRM - Montpellier Research in Management - UPVM - Université Paul-Valéry - Montpellier 3 - UPVD - Université de Perpignan Via Domitia - Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School - UM - Université de Montpellier)

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

  • Naukhaiz Chaudhry & David Roubaud & Waheed Akhter & Muhammad Shahbaz, 2018. "Impact of terrorism on stock markets: Empirical evidence from the SAARC region," Post-Print hal-02048677, HAL.
    • Handle: RePEc:hal:journl:hal-02048677
    DOI: 10.1016/j.frl.2018.02.024
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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.
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    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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