Terrorist A orist Attacks on September 11, 2001: A T ttacks on September 11, 2001: A Test of Mark est of Market Efficiency in the Insurance and Airline Industries
Document Type
Article
Publication Date
2023
Abstract
How will the market react to an unforeseen event? How efficiently will it react to the terrorist attacks on September 11, 2001? This event study tests the semi-strong market efficiency theory by looking at the stock price returns of two samples of totaling 29 firms that were greatly affected by this event using the risk adjusted event study methodology. The evidence shows that both the insurance airline industries were greatly negatively affected on and after the event. However, it is clear to see that the firms in the airline industry were hurt a lot worse overall and their stock price returns took a longer time to recover. Regardless of the differentiation, both industries confirm the semi-strong market efficiency theory.
Recommended Citation
Keely, J., Bacon, F. W. (2023). Terrorist Attacks on September 11, 2001: A Test of Market Efficiency in the Insurance Industry. Journal of Business and Behavioral Sciences, 35(1), 84-91. www.asbbs.org/
