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The impact of terrorist incidents on the sub financial and non-financial sectors: Evidence from the United States

Author

Listed:
  • Dlawar Mahdi Hadi

    (Department of Accounting, College of Business, Komar University of Science and Technology, Sulaymania, 460002, Iraq)

  • Bawan Yassin Sabir

    (Department of Accounting, Kurdistan Technical Institute, Sulaymaniyah, 460002, Iraq)

  • Farman Marif Ahmed

    (Finance Officer, Rehabilitation, Education and Community Health (REACH) –Iraq. Ashty quarter, Ainkawa, Erbil, Iraq)

Abstract

This paper examines the impact of the September 11th attacks on the United States financial and non-financial sectors. The empirical analysis includes 5 financial and 28 non-financial sub-sector indices using the event study method, structural break test, and volatility analyses. The results of the estimation show that except for the short-lived impact on the real estate sector, the attacks had no significant impact on financial sector indices. Different reactions among non-financial sectors are observed. Travel and leisure and leisure goods sectors were the two industries that were mostly affected by the attacks due to the nature of their business. The outcomes of the analyses provide several diversification strategies and speculation opportunities for both portfolio managers and investors. Key Words:September 11th attacks, financial sector, non-financial sector, United States

Suggested Citation

  • Dlawar Mahdi Hadi & Bawan Yassin Sabir & Farman Marif Ahmed, 2022. "The impact of terrorist incidents on the sub financial and non-financial sectors: Evidence from the United States," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(1), pages 187-195, January.
    • Handle: RePEc:rbs:ijbrss:v:11:y:2022:i:1:p:187-195
    DOI: 10.20525/ijrbs.v11i1.1584
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    References listed on IDEAS

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    3. Dirk Brounen & Jeroen Derwall, 2010. "The Impact of Terrorist Attacks on International Stock Markets," European Financial Management, European Financial Management Association, vol. 16(4), pages 585-598, September.
    4. Mnasri, Ayman & Nechi, Salem, 2016. "Impact of terrorist attacks on stock market volatility in emerging markets," Emerging Markets Review, Elsevier, vol. 28(C), pages 184-202.
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