Economic Impacts of Global Terrorism: From Munich to Bali

Barth, James R.; Li, Tong; McCarthy, D. W.; Phumiwasana, Triphon; Yago, Glenn

doi:10.2139/ssrn.892033

Cited by 23 publications

(22 citation statements)

References 5 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Although, a terrorist attack directly affects only a few businesses, some have suggested that it can lead to business failure beyond the businesses that are attacked, because the indirect effects of terrorism have a tendency to be widely felt. These effects include a decline in buyer demand, increased inter-business transaction costs, interruptions in international supply chains, decline in foreign direct investment (FDI), and the imposition of new government regulations and procedures intended to manage emergent threats (Barth et al 2006;Bouchet 2004;Czinkota et al 2004;Lenain et al 2002;Spich & Grosse 2005). For instance, the fear of terrorism heightens the level of uncertainty in the market, which adversely affects consumer behaviour and the businesses' investment decisions (Becker & Rubinstein 2004;Drakos 2010).…”

Section: Why Terrorism Should Lead To Business Failurementioning

confidence: 99%

Terrorism and country-level global business failure

Tingbani

Okafor

Tauringana

et al. 2019

Journal of Business Research

View full text Add to dashboard Cite

This paper contributes to the literature on business failure by investigating the relationship between terrorism and country-level global business failure by using a sample of 174 countries over the period 2009-2015. To proxy for business failure, the 'Resolving Insolvency' index, which is a component of the World Bank's 'Doing Business' index, was adapted and used. The results of the fixed-effects estimation show that terrorism has a positive and significant relationship with business failure for the full sample. When the sample is divided into developed, developing and fragile states, the results show that terrorism is positively and significantly related with business failure in developing and fragile states only. Estimates show that for every 100 terrorist incidents, business failure increases by 1% and 0.7% points, in South Asia and Sub Saharan Africa (SSA) countries, respectively. The findings contribute to our understanding of the effects of terrorism on business failure, and how this differs depending on whether the country is developing, developed, or is a fragile state.

show abstract

Section: Why Terrorism Should Lead To Business Failurementioning

confidence: 99%

Terrorism and country-level global business failure

Tingbani

Okafor

Tauringana

et al. 2019

Journal of Business Research

View full text Add to dashboard Cite

show abstract

“…From an organization perspective, network theory addresses terrorism in light of indirect effects of terrorism (Spich & Grosse, 2005) as firms are increasingly interconnected globally and terrorism can affect sales declines, increase costs due to government regulations or security measures, and supply chain interruptions (Barth, Li, McCarthy, Phumiwasana, & Yago, 2006;Steen et al, 2006). Although the direct effects of terrorism are estimable to an extent though unpredictable, the indirect effects are more difficult to ascertain.…”

Section: Organization-level Perspectivementioning

confidence: 99%

Engaging in duty of care: towards a terrorism preparedness plan

Harvey

Dabić

Kiessling

et al. 2017

The International Journal of Human Resource Management

View full text Add to dashboard Cite

“…The immediate negative effects of terror attacks on the financial markets predict ably result in immediate market declines (Abadie and Gardeazabal, 2007;Barth et al, 2006;Eldor and Melnick, 2004;Zussman et al, 2008). However, because most countries have not experienced sustained terrorism campaigns involving multiple events over time, the effects of prolonged and intense terror, namely sustained MCE on social moods and the resultant impact on market behaviour, has not been sys tematically examined.…”

Section: Introductionmentioning

confidence: 99%

The normalisation of terror: the response of Israel's stock market to long periods of terrorism

et al. 2010

View full text Add to dashboard Cite

Man-made disasters such as acts of terrorism may affect a society's resiliency and sensitivity to prolonged physical and psychological stress. The Israeli Tel Aviv stock market TA-100 Index was used as an indicator of reactivity to suicide terror bombings. After accounting for factors such as world market changes and attack severity and intensity, the analysis reveals that although Israel's financial base remained sensitive to each act of terror across the entire period of the Second Intifada (2000-06), sustained psychological resilience was indicated with no apparent overall market shift. In other words, we saw a 'normalisation of terror' following an extended period of continued suicide bombings. The results suggest that investors responded to less transitory global market forces, indicating sustained resilience and long-term market confidence. Future studies directly measuring investor expectations and reactions to man-made disasters, such as terrorism, are warranted.

show abstract

Economic Impacts of Global Terrorism: From Munich to Bali

Cited by 23 publications

References 5 publications

Terrorism and country-level global business failure

Terrorism and country-level global business failure

Engaging in duty of care: towards a terrorism preparedness plan

The normalisation of terror: the response of Israel's stock market to long periods of terrorism

Contact Info

Product

Resources

About