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Effect of Qatar diplomatic and economic isolation on GCC stock markets: An event study approach

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  • Buigut, Steven
  • Kapar, Burcu

Abstract

This study undertakes a comparative analysis of the impact of the Qatar blockade on seven stock markets in GCC countries using event study methodology. Qatar’s economy shows resilience, with its indices significantly reacting negatively to the crisis over the shorter event windows, but less so over longer event window. Saudi Arabia’s banking industry, Dubai’s real estate industry and Abu Dhabi’s energy industry registered positive abnormal return, indicating no serious economic stress to the leading blockading countries. Our findings suggest economic considerations alone is unlikely to be the compelling factor for the feuding parties in the quest for a solution.

Suggested Citation

  • Buigut, Steven & Kapar, Burcu, 2020. "Effect of Qatar diplomatic and economic isolation on GCC stock markets: An event study approach," Finance Research Letters, Elsevier, vol. 37(C).
    • Handle: RePEc:eee:finlet:v:37:y:2020:i:c:s1544612319304921
    DOI: 10.1016/j.frl.2019.101352
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    Cited by:

    1. Ben Cheikh, Nidhaleddine & Ben Naceur, Sami & Kanaan, Oussama & Rault, Christophe, 2021. "Investigating the asymmetric impact of oil prices on GCC stock markets," Economic Modelling, Elsevier, vol. 102(C).
    2. Tee, Chwee-Ming & Wong, Wai-Yan & Hooy, Chee-Wooi, 2022. "Government power and the value of political connections: Evidence from Covid-19 economic lockdowns," Finance Research Letters, Elsevier, vol. 47(PB).
    3. Ngo Thai Hung, 2021. "Financial connectedness of GCC emerging stock markets," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 11(4), pages 753-773, December.
    4. Khalfaoui, Rabeh & Gozgor, Giray & Goodell, John W., 2023. "Impact of Russia-Ukraine war attention on cryptocurrency: Evidence from quantile dependence analysis," Finance Research Letters, Elsevier, vol. 52(C).
    5. Olajide O. Oyadeyi & Sodiq Arogundade & Mduduzi Biyase, 2024. "How did African stock markets react to the Russia-Ukraine crisis “black-swan” event? Empirical insights from event study," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-13, December.
    6. Wenmin Wu & Chien-Chiang Lee & Wenwu Xing & Shan-Ju Ho, 2021. "The impact of the COVID-19 outbreak on Chinese-listed tourism stocks," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 7(1), pages 1-18, December.
    7. Josua Sinaga & Ting Wu & Yu-wang Chen, 2022. "Impact of government interventions on the stock market during COVID-19: a case study in Indonesia," SN Business & Economics, Springer, vol. 2(9), pages 1-35, September.
    8. Kamal, Md Rajib & Ahmed, Shaker & Hasan, Mostafa Monzur, 2023. "The impact of the Russia-Ukraine crisis on the stock market: Evidence from Australia," Pacific-Basin Finance Journal, Elsevier, vol. 79(C).
    9. Goutam Sutar & Krantiraditya Dhalmahapatra & Sayan Chakraborty, 2023. "Impact of India’s Demonetization Episode on its Equity Markets," Asia-Pacific Financial Markets, Springer;Japanese Association of Financial Economics and Engineering, vol. 30(4), pages 649-675, December.

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    More about this item

    Keywords

    Comparative analysis; GCC stock markets; Qatar blockade; Event study;
    All these keywords.

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates

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