The market reaction on the New York stock exchange due to the Oklahoma city bombing

Abstract

This study tries to access the impact of the terrorist attack in 1995 in Oklahoma City, on the stock value of selected industries that are sensitive to unexpected catastrophic events such as terrorist attacks. The methodology used is the typical event study methodology. The results indicated that the airline, the multi-line insurance, the retailing and the transportation industries exhibited negative abnormal returns upon the announcement of the bombing. On the other hand the aerospace and defense industries, the courier and airfreight, the insurance and the integrated oil and gas industries exhibited positive abnormal returns on the event date.