RT Article
T1 The communicative impact of terrorist attacks on the financial marketplace: a perspective from the efficient market hypothesis
JF Crime, law and social change
VO 76
IS 4
SP 337
OP 366
A1 Roland, Nicholas
A2 Matusitz, Jonathan Andre 1976-
A2 Sturm, Ray
LA English
YR 2021
UL https://krimdok.uni-tuebingen.de/Record/1826465421
AB This study measures patterns following a terrorist attack, from the perspective of market efficiency, to determine the communicative impact of terrorist attacks on the financial marketplace. The Efficient Market Hypothesis postulates that asset prices fully reflect all available information. An important implication is that, because market price changes are determined by new information (or variations in discount rates), it would be highly difficult to "beat the market" with expert stock selection or market timing. Overall, we found that, based on mixed results, terrorist attacks do not lead to a distinguishable pattern in the financial marketplace. Nevertheless, drawing on the Yale Model of Persuasion, these results suggest that terrorists are effective in their communicative goals, and they do lead to a compelling pattern in the proportion of negative returns on the day of the attack. More precisely, terrorists are able to communicate their message on a global scale, thereby resulting in investors adjusting their estimates of value downward. While a possible price correction pattern was found, the lack of statistical analysis performed on the variables, to a certain degree of significance, is a limitation of this study that ultimately renders the results of the study inconclusive.
NO Literaturverzeichnis: Seite 365-366
K1 Terrorismus
K1 Terroristischer Anschlag
K1 Finanzmarkt
K1 Auswirkung
K1 Studie
DO 10.1007/s10611-021-09969-8