Common stock returns of us air transport companies before and after the september 11th terrorist attacks
Keywords:Systematic Risks, Abnormal Returns, Common Stock Valuations
AbstractThe impact of the September 11th, 2001 terrorist attacks on the twin towers in relation to common stock returns of companies in the US air transport sector was analyzed. Eleven companies were divided into two groups, five high priced and six low priced stocks. An event study compared returns before and after attacks, for the 11 stocks as well as for the high and low priced groups. All the results showed that there were no abnormalities after the attacks only a decrease in returns. This conclusion considered that in the US: 1 markets tend to react negatively to news that is prejudicial to cash flow of companies; 2 most of these companies already showed poor results prior the attacks; 3 the economy was slowing down at the time; 4 the end of the NASDAQ bubble in May 2001 was due to reduced activity and income of companies and 5 growing aversion of Arab Muslim countries towards policies for the Persian Gulf region increased exposure to terrorism.
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How to Cite
Santos, J. O. dos, Homenko, A., Garre, C., Cioffi, P. L. de M., & Saykovitch, S. L. (2008). Common stock returns of us air transport companies before and after the september 11th terrorist attacks . REGE Revista De Gestão, 15(2), 53-64. https://doi.org/10.5700/issn.2177-8736.rege.2008.36637