Western terrorism and stock market returns

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Volume Title

School of Business | Bachelor's thesis

Date

2019

Major/Subject

Mcode

Degree programme

Rahoitus

Language

en

Pages

18

Series

Abstract

In this thesis I study the effects of Western terrorist attacks on Western country-level market returns in select 15 countries using a sample of over 3000 attacks between 1970-2018. I find that terrorist attacks in general do not produce a statistically significant effect on market returns. This result does not change when only observing attacks with a high number of casualties. However, terrorist attacks that have caused major economic damage have a significant effect on market returns in five of the countries observed.

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Thesis advisor

Ungeheuer, Michael

Keywords

Terrorism, Stock, Market, Return

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