Market response of US equities to domestic natural disasters: industry-based evidence

Ihtisham A. Malik, Robert W. Faff, Kam F. Chan

Research output: Contribution to journalArticle

Abstract

This study investigates US industry-based price response to domestic natural disasters over the period 1960–2015. Using an event study methodology, we estimate pre-, during and post-disaster impacts. We document a slower response in the pre-disaster period than in the post-disaster period. We further find that industries react differently to the same disaster and that reactions are not always negative. For example, meteorological disasters have a positive (negative) market impact on Gold (Banking). Moreover, we provide evidence that not every industry responds similarly to different disasters, e.g., Gold reacts positively (negatively) to meteorological (geophysical) disasters.

Original languageEnglish
JournalAccounting and Finance
DOIs
Publication statusE-pub ahead of print - 21 Jun 2019

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Market response
Industry
Disaster
Equity
Natural disasters
Price response
Market impact
Banking
Event study methodology

Cite this

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abstract = "This study investigates US industry-based price response to domestic natural disasters over the period 1960–2015. Using an event study methodology, we estimate pre-, during and post-disaster impacts. We document a slower response in the pre-disaster period than in the post-disaster period. We further find that industries react differently to the same disaster and that reactions are not always negative. For example, meteorological disasters have a positive (negative) market impact on Gold (Banking). Moreover, we provide evidence that not every industry responds similarly to different disasters, e.g., Gold reacts positively (negatively) to meteorological (geophysical) disasters.",
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Market response of US equities to domestic natural disasters : industry-based evidence. / Malik, Ihtisham A.; Faff, Robert W.; Chan, Kam F.

In: Accounting and Finance, 21.06.2019.

Research output: Contribution to journalArticle

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