Received: 2019-02-18  |  Accepted: 2019-12-20  |  Published: 2020-03-30

Title

Terrorism activities influence on financial stock markets: an empirical evidence from United Kingdom, India, France, Pakistan, Spain and America


Abstract

The aim of this study is to investigate the impact of terrorism activities on five developing and developed economies and their financial markets. Five countries selected for analysis include Spain, United Kingdom, India, Pakistan, United States of America and France. The variables under consideration are terrorism activities and market return of the financial stock markets. This study contains time series data collected on daily basis from 1st Jan 2001 to 31st Dec 2018. Study utilized deductive research approach with quantitative data. A linear regression model is used to estimate the effect of terrorist activities on the market return of the financial stock markets of the selected countries. The results of the model suggest that the market return is very much affected by the occurrence of such terror events and the model is overall statistically significant. The results of this study are consistent with the results of Freytag et al. (2009) and Bas et al., (2017) studies which show that there is significant influence of terrorism activities on financial stock market of five selected countries. This study is very significant and essential for investors and analysts as it helps them to understand how terror factors influence stock market and the right time to invest or exit the market. Findings of the study highlight and explain how terrorism activities influence the overall market return.


Keywords

terrorism activities, financial stock market, linear regression model, quantitative analysis, deductive approach


JEL classifications

G23


URI

http://jssidoi.org/ird/article/30


DOI


HAL


Pages

443-455


Funding

This research was partly supported by the project, which has received funding from the European Union's Horizon 2020 research and innovation programme European Research Council (ERC) (Grant Agreement Number 830892)

This is an open access issue and all published articles are licensed under a
Creative Commons Attribution 4.0 International License

Authors

Masood, Omar
University of Lahore, Lahore, Pakistan https://www.uol.edu.pk
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Javaria, Kiran
University of Lahore, Lahore, Pakistan https://www.uol.edu.pk
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Petrenko, Yelena
Plekhanov Russian University of Economics, Moscow, Russian Federation https://www.rea.ru
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Journal title

Insights into Regional Development

Volume

2


Number

1


Issue date

March 2020


Issue DOI


ISSN

ISSN 2345-0282 (online)


Publisher

VšĮ Entrepreneurship and Sustainability Center, Vilnius, Lithuania

Cited

Google Scholar

Article views & downloads

HTML views: 269  |  PDF downloads: 168

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