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Mass shootings, investors’ panic, and market anomalies

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Listed:
  • Sakariyahu, Rilwan
  • Lawal, Rodiat
  • Yusuf, Abdulmueez
  • Olatunji, Abdulganiyu

Abstract

Do mass shootings exacerbate investors’ sentiments towards the stock market? We empirically examine this question using 1947 cases of mass shootings in the US from February 2014 to May 2023. We document that investors react negatively to mass shootings, as evidenced by the drop in market index immediately following the incidence. Further analysis indicates that the impact varies by sectors and the impact of the shootings on market performance is correlated with the intensity of internet-related search about the event.

Suggested Citation

  • Sakariyahu, Rilwan & Lawal, Rodiat & Yusuf, Abdulmueez & Olatunji, Abdulganiyu, 2023. "Mass shootings, investors’ panic, and market anomalies," Economics Letters, Elsevier, vol. 231(C).
    • Handle: RePEc:eee:ecolet:v:231:y:2023:i:c:s0165176523003099
    DOI: 10.1016/j.econlet.2023.111284
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    References listed on IDEAS

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    More about this item

    Keywords

    Mass shooting; Investor panic; Stock market; Anomalies;
    All these keywords.

    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading

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