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Date: April 30, 2024 Tue
Time: 1:46 am
Time: 1:46 am
Results for financial markets
1 results foundAuthor: Gopal, Anandasivam Title: Traders, Guns, and Money: The Effect of Mass Shootings on Stock Price Summary: In this work, we investigate how mass shootings influence the stock price of firearms manufacturers. While significant anecdotal evidence suggests there is an immediate spike in firearms purchase after such events, the reaction of financial markets is unclear. On one hand, if the increased short-term demand represents an unanticipated financial windfall for firearms manufacturers, the stock prices of the firms may rise. On the other hand, mass shootings may result in perceptions of the social contract between the firm and society being systematically violated. In this case, the increasing potential for regulation may render the firm's business model untenable in the long run, leading to stock prices decreasing. We empirically resolve this tension using a market movement event study of 93 mass shootings between 2009 and 2013. Findings suggest that stock prices of firearm manufacturers significantly decline over a 2, 5, 10, and 30 day window in the wake of mass shootings. Furthermore, these losses are exacerbated by the presence of a handgun and the number of victims killed. Interestingly, results are not influenced by the location of the crime, insofar as there is no difference across "red" or "blue" states, or the loss of a child. Details: Unpublished paper, 2015. 35p. Source: Internet Resource: Robert H. Smith School Research Paper No. RHS 2581664 ; Fox School of Business Research Paper No. 15-061 : Accessed May 6, 2015 at: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2581664 Year: 2015 Country: United States URL: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2581664 Shelf Number: 135531 Keywords: Financial MarketsGun-Related ViolenceMass Shootings (U.S.)Violent Crime |