Do terrorist attacks harm financial markets? A meta-analysis of event studies and the determinants of adverse impact

Research output: Contribution to journalArticlepeer-review

12 Citations (Scopus)
838 Downloads (Pure)


This study reassesses the common belief that terrorist attacks destabilize financial markets, by analyzing event studies covering 10,576 individual attacks and 141,665 nonattack days across 72 stock and foreign exchange markets in 36 countries from 1996 to 2015. The meta-analysis reveals that terrorist attacks have almost no impact on stock markets and only marginal effect on foreign exchange markets, though effects vary with individual attacks and markets. The number of fatalities slightly raises the likelihood of adverse impact, while the number of wounded and the magnitude of recent attacks slightly decrease it. The markets are hit less hard when attack-day returns are positive, but variance is more likely to increase in the short term. Also, the impact of an attack is stronger when the market is performing extremely well or poorly.
Original languageEnglish
Pages (from-to)227-247
Number of pages21
JournalGlobal Finance Journal
Early online date21 Jun 2018
Publication statusPublished - Aug 2018

Bibliographical note

NOTICE: this is the author’s version of a work that was accepted for publication in Global Finance Journal. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Global Finance Journal, [[VOL,] [ISS], (2018)] DOI: 10.1016/j.gfj.2018.06.003
© 2018, Elsevier. Licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International


  • Terrorism
  • Terrorist Attacks
  • Stock Market
  • Foreign Exchange Market
  • Event Studies
  • Quantile Regression


Dive into the research topics of 'Do terrorist attacks harm financial markets? A meta-analysis of event studies and the determinants of adverse impact'. Together they form a unique fingerprint.

Cite this