The financial costs of terrorism: evidence from Germany

Although the physical and emotional costs of terrorism are widely known, the financial price of terror attacks is still obscure. This paper seeks to examine the heightened uncertainty surrounding terror attacks across the two Germany’s largest and most visited cities (in particular, Berlin and Munic...

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Autores principales:	Jamal Bouoiyour, Refk Selmi
Formato:	article
Lenguaje:	EN
Publicado:	Università Carlo Cattaneo LIUC 2021
Materias:	terrorism the german stock market sectoral-level analysis Economics as a science HB71-74
Acceso en línea:	https://doaj.org/article/8c9fd6a4d0864b76915878f85906c133
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id	oai:doaj.org-article:8c9fd6a4d0864b76915878f85906c133
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spelling	oai:doaj.org-article:8c9fd6a4d0864b76915878f85906c1332021-11-25T10:40:16ZThe financial costs of terrorism: evidence from Germany10.25428/1824-2979/202101-87-1041824-2979https://doaj.org/article/8c9fd6a4d0864b76915878f85906c1332021-06-01T00:00:00Zhttps://ejce.liuc.it/18242979202101/182429792021180104.pdfhttps://doaj.org/toc/1824-2979Although the physical and emotional costs of terrorism are widely known, the financial price of terror attacks is still obscure. This paper seeks to examine the heightened uncertainty surrounding terror attacks across the two Germany’s largest and most visited cities (in particular, Berlin and Munich) to shed some light on the reactions of disaggregated German stock market to those unforeseen events. We robustly find that the impact of terrorism varies across sectors. The Berlin attack causes substantial German stock price moves. The airline, hotels, leisure and communication services were harmfully influenced to those events. Nevertheless, the banking and financial services and defense were weakly affected. More importantly, the German stock market has proven a sharp resilience and a prompt and efficient adaptation. The investors’ cognizance of the Germany’s modern greatly diversified, and highly competitive economy and the higher institutional quality have allowed to appropriately dealing with adverse consequences associated with terrorist attacks.Jamal BouoiyourRefk SelmiUniversità Carlo Cattaneo LIUCarticleterrorismthe german stock marketsectoral-level analysisEconomics as a scienceHB71-74ENThe European Journal of Comparative Economics, Vol 18, Iss 1, Pp 87-104 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	terrorism the german stock market sectoral-level analysis Economics as a science HB71-74
spellingShingle	terrorism the german stock market sectoral-level analysis Economics as a science HB71-74 Jamal Bouoiyour Refk Selmi The financial costs of terrorism: evidence from Germany
description	Although the physical and emotional costs of terrorism are widely known, the financial price of terror attacks is still obscure. This paper seeks to examine the heightened uncertainty surrounding terror attacks across the two Germany’s largest and most visited cities (in particular, Berlin and Munich) to shed some light on the reactions of disaggregated German stock market to those unforeseen events. We robustly find that the impact of terrorism varies across sectors. The Berlin attack causes substantial German stock price moves. The airline, hotels, leisure and communication services were harmfully influenced to those events. Nevertheless, the banking and financial services and defense were weakly affected. More importantly, the German stock market has proven a sharp resilience and a prompt and efficient adaptation. The investors’ cognizance of the Germany’s modern greatly diversified, and highly competitive economy and the higher institutional quality have allowed to appropriately dealing with adverse consequences associated with terrorist attacks.
format	article
author	Jamal Bouoiyour Refk Selmi
author_facet	Jamal Bouoiyour Refk Selmi
author_sort	Jamal Bouoiyour
title	The financial costs of terrorism: evidence from Germany
title_short	The financial costs of terrorism: evidence from Germany
title_full	The financial costs of terrorism: evidence from Germany
title_fullStr	The financial costs of terrorism: evidence from Germany
title_full_unstemmed	The financial costs of terrorism: evidence from Germany
title_sort	financial costs of terrorism: evidence from germany
publisher	Università Carlo Cattaneo LIUC
publishDate	2021
url	https://doaj.org/article/8c9fd6a4d0864b76915878f85906c133
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The financial costs of terrorism: evidence from Germany

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