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dc.contributor.authorTavor, Tchai
dc.contributor.authorTeitler-Regev, Sharon
dc.date.accessioned2019-03-20T09:37:27Z
dc.date.available2019-03-20T09:37:27Z
dc.date.issued2019
dc.identifier.citationTavor, T. & Teitler-Regev, S. 2019. The impact of disasters and terrorism on the stock market. Jamba: Journal of disaster risk studies. 11(1):1-8. [http://www.jamba.org.za/index.php/jamba]en_US
dc.identifier.issn1996-1421
dc.identifier.issn2072-845X (Online)
dc.identifier.urihttp://hdl.handle.net/10394/32001
dc.description.abstractThe growing number of negative events worldwide, among them natural disasters, artificial disasters and terrorism, has led the public to focus attention on the impact of such events on the economy and the capital market. This research examines the effects of natural disasters, artificial disasters and terrorism on the stock market in order to reveal profit opportunities. In this research, we collected data on 344 significant events that received media attention and examined the differences between the three types of events using the Pessimism Index. Some of the results include the following: (1) natural disasters cause the greatest damage to the economy, whereas terrorism causes the least damage; (2) natural disasters exhibit the highest level of severity, whereas artificial disasters have the lowest severity. The research reveals some opportunities for investors to obtain arbitrage profits. During natural disasters, the stock index decreases on the day of the events and on the two subsequent days. Therefore, investors should short sell the index on the day of the disaster and hold it for 2 days. On the contrary, during artificial disasters or terrorist incidents, the index drops only on the day of the event and the next day, so investors should short sell the index on the day of the disaster and hold it until the end of the first working day following the incident.en_US
dc.description.urihttps://doi.org/10.4102/jamba.v11i1.534
dc.language.isoenen_US
dc.publisherOASISen_US
dc.subjectTerrorismen_US
dc.subjectNatural disastersen_US
dc.subjectArtificial disastersen_US
dc.subjectCapital marketsen_US
dc.titleThe impact of disasters and terrorism on the stock marketen_US
dc.typeArticleen_US
dc.contributor.researchID


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