Impact of Geopolitical Risk on the Information Technology, Communication Services and Consumer Staples Sectors of the S&P 500 Index

We investigate the effect of geopolitical risk on the returns of firms in the Information Technology, Communication Services, and Consumer Staples sectors within the S&P 500 index. We use the event study methodology and perform more than 17,000 regressions to provide empirical evidence at sector...

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Autores principales:	Gerard Atabong Fossung, Vasileios Chatzis Vovas, A. M. M. Shahiduzzaman Quoreshi
Formato:	article
Lenguaje:	EN
Publicado:	MDPI AG 2021
Materias:	geopolitical risk event study S&P 500 index information technology communication services consumer staples Risk in industry. Risk management HD61 Finance HG1-9999
Acceso en línea:	https://doaj.org/article/4f24bfe53f8c4f78a6e060d08a1c669f
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spelling	oai:doaj.org-article:4f24bfe53f8c4f78a6e060d08a1c669f2021-11-25T18:08:45ZImpact of Geopolitical Risk on the Information Technology, Communication Services and Consumer Staples Sectors of the S&P 500 Index10.3390/jrfm141105521911-80741911-8066https://doaj.org/article/4f24bfe53f8c4f78a6e060d08a1c669f2021-11-01T00:00:00Zhttps://www.mdpi.com/1911-8074/14/11/552https://doaj.org/toc/1911-8066https://doaj.org/toc/1911-8074We investigate the effect of geopolitical risk on the returns of firms in the Information Technology, Communication Services, and Consumer Staples sectors within the S&P 500 index. We use the event study methodology and perform more than 17,000 regressions to provide empirical evidence at sector level that geopolitical risk leads to different responses across these three sectors. The response of the Information Technology sector is negative for all event windows under study, except the one spanning 10 days prior to the geopolitical event and 10 days after. The Communication Services sector has positive returns as a result of geopolitical events for all event windows, except the one from the geopolitical event date and 5 days after. The Consumer Staples sector shows a negative impact on geopolitical risk for all event windows except the one from the geopolitical event date and 5 days after, demonstrating a negative correlation to the Communication Services sector.Gerard Atabong FossungVasileios Chatzis VovasA. M. M. Shahiduzzaman QuoreshiMDPI AGarticlegeopolitical riskevent studyS&P 500 indexinformation technologycommunication servicesconsumer staplesRisk in industry. Risk managementHD61FinanceHG1-9999ENJournal of Risk and Financial Management, Vol 14, Iss 552, p 552 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	geopolitical risk event study S&P 500 index information technology communication services consumer staples Risk in industry. Risk management HD61 Finance HG1-9999
spellingShingle	geopolitical risk event study S&P 500 index information technology communication services consumer staples Risk in industry. Risk management HD61 Finance HG1-9999 Gerard Atabong Fossung Vasileios Chatzis Vovas A. M. M. Shahiduzzaman Quoreshi Impact of Geopolitical Risk on the Information Technology, Communication Services and Consumer Staples Sectors of the S&P 500 Index
description	We investigate the effect of geopolitical risk on the returns of firms in the Information Technology, Communication Services, and Consumer Staples sectors within the S&P 500 index. We use the event study methodology and perform more than 17,000 regressions to provide empirical evidence at sector level that geopolitical risk leads to different responses across these three sectors. The response of the Information Technology sector is negative for all event windows under study, except the one spanning 10 days prior to the geopolitical event and 10 days after. The Communication Services sector has positive returns as a result of geopolitical events for all event windows, except the one from the geopolitical event date and 5 days after. The Consumer Staples sector shows a negative impact on geopolitical risk for all event windows except the one from the geopolitical event date and 5 days after, demonstrating a negative correlation to the Communication Services sector.
format	article
author	Gerard Atabong Fossung Vasileios Chatzis Vovas A. M. M. Shahiduzzaman Quoreshi
author_facet	Gerard Atabong Fossung Vasileios Chatzis Vovas A. M. M. Shahiduzzaman Quoreshi
author_sort	Gerard Atabong Fossung
title	Impact of Geopolitical Risk on the Information Technology, Communication Services and Consumer Staples Sectors of the S&P 500 Index
title_short	Impact of Geopolitical Risk on the Information Technology, Communication Services and Consumer Staples Sectors of the S&P 500 Index
title_full	Impact of Geopolitical Risk on the Information Technology, Communication Services and Consumer Staples Sectors of the S&P 500 Index
title_fullStr	Impact of Geopolitical Risk on the Information Technology, Communication Services and Consumer Staples Sectors of the S&P 500 Index
title_full_unstemmed	Impact of Geopolitical Risk on the Information Technology, Communication Services and Consumer Staples Sectors of the S&P 500 Index
title_sort	impact of geopolitical risk on the information technology, communication services and consumer staples sectors of the s&p 500 index
publisher	MDPI AG
publishDate	2021
url	https://doaj.org/article/4f24bfe53f8c4f78a6e060d08a1c669f
work_keys_str_mv	AT gerardatabongfossung impactofgeopoliticalriskontheinformationtechnologycommunicationservicesandconsumerstaplessectorsofthesp500index AT vasileioschatzisvovas impactofgeopoliticalriskontheinformationtechnologycommunicationservicesandconsumerstaplessectorsofthesp500index AT ammshahiduzzamanquoreshi impactofgeopoliticalriskontheinformationtechnologycommunicationservicesandconsumerstaplessectorsofthesp500index
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Impact of Geopolitical Risk on the Information Technology, Communication Services and Consumer Staples Sectors of the S&P 500 Index

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