This file is part of IDEAS , which uses RePEc data
[ Papers |
Articles |
Software |
Books |
Chapters |
Authors |
Institutions |
JEL Classification |
NEP reports |
Search |
New papers by email |
Author registration |
Rankings |
Volunteers |
FAQ |
Blog |
Help! ]
Diamonds Are Forever, Wars Are Not: Is Conflict Bad for Private Firms? Author info | Abstract | Publisher info | Download info | Related research | Statistics Massimo Guidolin
Eliana La Ferrara
Additional information is available for the following
registered author(s):
This paper studies the relationship between civil war and the value of firms in a poor, resource-abundant country using microeconomic data for Angola. We focus on diamond mining firms and conduct an event study on the sudden end of the conflict, marked by the death of the rebel movement leader in 2002. We find that the stock market perceived this event as "bad news" rather than "good news" for companies holding concessions in Angola, as their abnormal returns declined by 4 percentage points. The event had no effect on a control portfolio of otherwise similar diamond mining companies. This finding is corroborated by other events and by the adoption of alternative methodologies. We interpret our findings in light of conflict-generated entry barriers, government bargaining power, and transparency in the licensing process. (JEL D74, G32, O13, O17, Q34)
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
page . Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Article provided by American Economic Association in its journal American Economic Review .
Volume (Year): 97 (2007)
Issue (Month): 5 (December)
Pages: 1978-1993
Download reference. The following formats are available: HTML
(with abstract ),
plain text
(with abstract ),
BibTeX ,
RIS (EndNote, RefMan, ProCite),
ReDIF
Handle: RePEc:aea:aecrev:v:97:y:2007:i:5:p:1978-1993Contact details of provider: Email: Web page: http://www.aeaweb.org/aer/ More information through EDIRC
Order Information: Web: http://www.aeaweb.org/subscribe.html
For technical questions regarding this item, or to correct its listing, contact: (Christopher F. Baum).
Keywords: Other versions of this item:
Paper Massimo Guidolin & Eliana La Ferrara, 2006.
"Diamonds are forever, wars are not. Is conflict bad for private firms? ,"
Working Papers
2005-004, Federal Reserve Bank of St. Louis.
[Downloadable!] Guidolin, Massimo & La Ferrara, Eliana, 2004.
"Diamonds are Forever, Wars are Not: Is Conflict Bad for Private Firms? ,"
CEPR Discussion Papers
4668, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: Alberto Abadie & Javier Gardeazabal, 2001.
"The Economic Costs of Conflict: A Case-Control Study for the Basque Country ,"
NBER Working Papers
8478, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Other versions: Collier, Paul & Hoeffler, Anke, 1998.
"On Economic Causes of Civil War ,"
Oxford Economic Papers ,
Oxford University Press, vol. 50(4), pages 563-73, October.
Alesina, Alberto & Perotti, Roberto, 1996.
"Income distribution, political instability, and investment ,"
European Economic Review ,
Elsevier, vol. 40(6), pages 1203-1228, June.
[Downloadable!] (restricted)
Other versions: Raymond Fisman, 2001.
"Estimating the Value of Political Connections ,"
American Economic Review ,
American Economic Association, vol. 91(4), pages 1095-1102, September.
[Downloadable!] (restricted)
Svensson, Jakob, 1998.
"Investment, property rights and political instability: Theory and evidence ,"
European Economic Review ,
Elsevier, vol. 42(7), pages 1317-1341, July.
[Downloadable!] (restricted)
Johnson, Simon & Mitton, Todd, 2003.
"Cronyism and capital controls: evidence from Malaysia ,"
Journal of Financial Economics ,
Elsevier, vol. 67(2), pages 351-382, February.
[Downloadable!] (restricted)
Other versions:
Full
references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Massimo Guidolin & Eliana La Ferrara, 2005.
"The economic effects of violent conflict: evidence from asset market reactions ,"
Working Papers
2005-066, Federal Reserve Bank of St. Louis.
[Downloadable!]
Kyle Hyndman, 2005.
"Status Quo Effects in Bargaining: An Empirical Analysis of OPEC ,"
Industrial Organization
0511016, EconWPA.
[Downloadable!]
Other versions: Stefano DellaVigna & Eliana La Ferrara, 2007.
"Detecting Illegal Arms Trade ,"
NBER Working Papers
13355, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Olsson, Ola, 2004.
"Diamonds Are a Rebel’s Best Friend ,"
Working Papers in Economics
156, Göteborg University, Department of Economics.
Other versions: Ouarda Merrouche, 2006.
"Economic Consequences of Wars: Evidence from Landmine Contamination in Mozambique ,"
Economics Working Papers
ECO2006/22, European University Institute.
[Downloadable!]
Tom Bundervoet & Philip Verwimp & Richard Akresh, 2007.
"Health and Civil War in Rural Burundi ,"
IZA Discussion Papers
2951, Institute for the Study of Labor (IZA).
[Downloadable!]
Other versions:
Bundervoet, Tom & Verwimp, Philip & Akresh, Richard, 2008.
"Health and civil war in rural Burundi ,"
Policy Research Working Paper Series
4500, The World Bank.
[Downloadable!] Tom Bundervoet & Philip Verwimp & Richard Akresh, 2008.
"Health and Civil War in Rural Burundi ,"
Research Working Papers
5, MICROCON - A Micro Level Analysis of Violent Conflict.
[Downloadable!] Tom Bundervoet & Philip Verwimp & Richard Akresh, 2009.
"Health and Civil War in Rural Burundi ,"
Journal of Human Resources ,
University of Wisconsin Press, vol. 44(2).
[Downloadable!] (restricted) Akresh, Richard & Verwimp, Philip & Bundervoet, Tom, 2007.
"Civil war, crop failure, and child stunting in Rwanda ,"
Policy Research Working Paper Series
4208, The World Bank.
[Downloadable!]
Ouarda Merrouche, 2007.
"Landmines, Poverty and Recovery: Instrumental Variables Evidence from Mozambique ,"
Working Papers
200709, Geary Institute, University College Dublin.
[Downloadable!]
Raddatz, Claudio, 2009.
"Multilateral debt relief through the eyes of financial markets ,"
Policy Research Working Paper Series
4872, The World Bank.
[Downloadable!]
Timothy Besley & Hannes Mueller, 2009.
"Estimating the Peace Dividend:The Impact of Violence on HousePrices in Northern Ireland ,"
STICERD - Economic Organisation and Public Policy Discussion Papers Series
011, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
[Downloadable!]
Jo Thori Lind & Karl Ove Moene & Fredrik Willumsen, 2009.
"Opium for the Masses? Conflict-Induced Narcotics Production in Afghanistan ,"
CESifo Working Paper Series
CESifo Working Paper No. , CESifo Group Munich.
[Downloadable!]
Other versions: Ouarda Merrouche, 2006.
"The long-term educational cost of war: evidence from landmine contamination in Cambodia ,"
IFS Working Papers
W06/11, Institute for Fiscal Studies.
[Downloadable!]
Joshua D. Angrist & Adriana D. Kugler, 2007.
"Rural Windfall or a New Resource Curse? Coca, Income, and Civil Conflict in Colombia ,"
IZA Discussion Papers
2790, Institute for the Study of Labor (IZA).
[Downloadable!]
Other versions:
Angrist, Joshua & Kugler, Adriana D., 2005.
"Rural Windfall or a New Resource Curse? Coca, Income and Civil Conflict in Colombia ,"
CEPR Discussion Papers
5324, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) Joshua D. Angrist & Adriana Kugler, 2005.
"Rural Windfall or a New Resource Curse? Coca, Income, and Civil Conflict in Colombia ,"
NBER Working Papers
11219, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted) Joshua D. Angrist & Adriana D. Kugler, 2008.
"Rural Windfall or a New Resource Curse? Coca, Income, and Civil Conflict in Colombia ,"
The Review of Economics and Statistics ,
MIT Press, vol. 90(2), pages 191-215, 03.
[Downloadable!] (restricted)
Access and
download statistics Did you know? You can create a compilation of all publications of a group of people, say alumni of a program, your students or memers of an association.
This page was last updated on 2009-11-16.
This information is provided to you by IDEAS at the Department of Economics , College of Liberal Arts and Sciences , University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics .