Small investment and large returns: Terrorism, media and the economy

Melnick, Rafi; Eldor, Rafi

doi:10.1016/j.euroecorev.2010.03.004

Cited by 23 publications

(13 citation statements)

References 10 publications

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“…With reference to the economic effects of COVID-19, two dimensions of attitude emerged, showing a good level of internal consistency: economic effects, referring to the impact of the COVID-19 pandemic on the stock market, work activities, and tourism, and price increase, stressing the increasing cost of medical devices to be used to face the infection, such as face masks and sanitizing gel. Past research on the media coverage of emergencies has shown potentially dramatic effects of this communication on the economy, as in the case of terrorism [ 92 , 93 ]. For example, Melnick and Eldor [ 92 ] stressed that rather than terrorist attacks in themselves, it is the media coverage of terrorism that is the only significant variable explaining the economic damage incurred.…”

Section: Discussionmentioning

confidence: 99%

TV News and COVID-19: Media Influence on Healthy Behavior in Public Spaces

Scopelliti

Pacilli

Aquino

2021

IJERPH

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The COVID-19 outbreak has dramatically changed our life. Despite the rapid growth of scientific publications about medical aspects of the pandemic, less has been explored about the effects of media communication regarding COVID-19 on healthy behaviors. Yet, the scientific literature has widely debated on how media can influence people’s health-related evaluations, emotions, and behaviors. To fill this gap, the aim of this study was to investigate the relationships between media exposure, people’s attitudes and emotions toward media contents, and healthy behaviors related to the use of public spaces, such as avoiding crowded places, wearing face masks, and maintaining social distance. A questionnaire referring to these variables was administered to an opportunistic sample of 174 participants in Italy during the off-peak period of the COVID-19 outbreak and before restrictions to mobility were extended to the whole country. Results showed that media exposure, the perception of social initiatives of prevention, and moderate levels of fear increase healthier behaviors in the use of public spaces. Perceiving alarming information did not significantly predict healthy behaviors in the use of public spaces. Results are discussed with reference to the previous literature. Suggestions to media communication to increase preventive behaviors during emergencies are also provided.

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Section: Discussionmentioning

confidence: 99%

TV News and COVID-19: Media Influence on Healthy Behavior in Public Spaces

Scopelliti

Pacilli

Aquino

2021

IJERPH

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“…Chen and Siems (2004) argued that institutions along with financial systems have become matured and can easily absorb terrorism turmoil without affecting stock returns. On the contrary some studies have shown after every incident of terrorism both idiosyncratic risk and systematic risk upsurge panicky and their effect remains for the long run (Corbet et al, 2018;El Ouadghiri & Peillex, 2018;Aksoy, 2014;Karolyi & Martell, 2010;Nikkinen & Vahamaa, 2010;Arin, Ciferri & Spagnolo, 2008;Eckstein & Tsiddon, 2004;Drakos, 2004;Melnick & Eldor, 2010). From the review of above said literature, the hypotheses of the study proposed as below: H 0 : There is no relation between terrorism and performance of PSX.…”

Section: Literature Reviewmentioning

confidence: 95%

Stock Market Response to Terrorist Attacks: An Event Study Approach

Tahir¹,

TAHIR²,

Syed³

et al. 2020

JAFEB

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The purpose of this research study is to examine the stock market's response to terrorist attacks. The study uses data of terrorist attacks in different parts of the country (Pakistan) from June 1, 2014 to May 31, 2017. The event window procedure applies to a 16-day window in which 5 days before and 10 days after the attack. In addition, several event windows have been built to test the response of the Pakistan Stock Exchange. KSE-100 index is taken as proxy of response. The total terrorist attacks are classified into four categories: attacks on law enforcement agencies, attacks on civilians, attacks on special places and attacks on politicians, government employees and bureaucrats. The standard market model is used to estimate the abnormal return of the Pakistan Stock Exchange, which takes 252 business days each year. Furthermore, BMP test is used to check statistical significance of cumulative abnormal rate of return (CAAR). The results of this study reveal that total number of terrorist attacks and attacks on law enforcement agencies show long-term effects on Pakistan stock exchange. However, attacks on civilians, attacks on special places and attacks on politicians, government employees and bureaucrats have little effect on the Pakistan Stock Exchange.

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“…Resilience management is the foundation for strong, legitimate, and rigor structure; whose boundaries are protected from the forecasted disrupted event and whose walls are constituted to bear environmental turbulences (Traerup, 2012). Melnick and Eldor (2010) conducted an economic study to understand that how media scrutinizes and report a terrorist incident, such as the number of published articles, the spacing of stories, the use of images, and the scale of the headlines affects stockholder's discernment. The media reporting is an actual outlet for economic loss by extremism.…”

Section: Literature Reviewmentioning

confidence: 99%

“…The economic situation of Pakistan has started to change after the terrorist attacks of 9/11. Ohio State University has demonstrated that business success rates remain at risk of terrorism in the US; Dow Jones industrial averages were dropped one day before 9/11 to 9600 points, but after the assault, the stock market collapsed because of the chaotic, volatile circumstance and plummeted to 7600 points (Essaddam & Karagianis, 2014;Melnick & Eldor, 2010).…”

Section: Introductionmentioning

confidence: 99%

“…There is no consensus in the literature that whether Pakistan's stock exchange is resilient to different categories of terroristic attacks based on real-world daily time series data. Moreover, in existing literature, some authors have utilized proxies and dummy variables regarding terroristic attacks in Pakistan (Shahbaz, 2013) and OECD member countries (Narayan et al, 2018), whereas other considered few specific events of terroristic attacks while investigating the terroristic impact on the stock exchange (Chesney et al, 2011;Essaddam & Karagianis, 2014;Jakob & Christoffer, 2017;Liu & Pratt, 2017;Melnick & Eldor, 2010;El Ouadghiri & Peillex, 2018;Papakyriakou et al, 2019) and didn't consider the real time-series data of multiple categories of terroristic attacks in Pakistan as is undertaken by our research. However, some of the research articles incorporate time-series data and utilize EGARCH models to investigate the impact of terrorism on the Turkish stock exchange (Gok et al, 2020).…”

Section: Introductionmentioning

confidence: 99%

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Market miracles: Resilience of Karachi stock exchange index against terrorism in Pakistan

Tabash

Sheikh

Asad

2020

Cogent Economics & Finance

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Terrorism plays a pivotal role in influencing the stock indexes of many countries. This research article claims to be first in accessing the asymmetrical effect of multiple categories of terroristic activities on stock indexes in the presence of macroeconomic volatility. This research utilized a Non-linear autoregressive distributive lag model (NARDL) to find out the asymmetrical relationship between terroristic disruptions and stock indexes. Data on terroristic attacks have been incorporated from 2002 to 2015, and more than 4600 observations taken into account. Positive shocks to attacks on mosques, killed in mosque attacks, killed in drone attacks, and army personal fatalities are negatively affecting the stock prices in the short run. Results indicated that such disruption causes a temporary negative effect on stock indexes only in the short run but in the long-run stock exchange remains resilient against such disruptions.

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Small investment and large returns: Terrorism, media and the economy

Cited by 23 publications

References 10 publications

TV News and COVID-19: Media Influence on Healthy Behavior in Public Spaces

TV News and COVID-19: Media Influence on Healthy Behavior in Public Spaces

Stock Market Response to Terrorist Attacks: An Event Study Approach

Market miracles: Resilience of Karachi stock exchange index against terrorism in Pakistan

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