Catastrophic events, contagion, and stock market efficiency: the case of the space shuttle challenger

Autor:	Jerry Frederick, Laurence E. Blose, Robin Bornkamp, Kendis Brown, Marci Brier
Rok vydání:	1996
Předmět:	Finance Economics and Econometrics Actuarial science Contagion effect business.industry Space Shuttle Corporation Public interest Abnormal return Economics Revenue Stock market business Stock (geology)
Zdroj:	Review of Financial Economics. 5:117-129
ISSN:	1058-3300
DOI:	10.1016/s1058-3300(96)90010-5
Popis:	This study examines the stock returns experienced by NASA contractors associated with the Space Shuttle Challenger explosion. Because of the extensive public interest in the explosion and the intensive and stirring news coverage, this event is a candidate for an irrational market response such as a selloff, a panic, or a contagion effect. The market evidence shows that on the day of the explosion, there was a significantly negative average abnormal return on the stock of NASA contractors. Any contagion effect was limited to a very narrow set of NASA contractors who received more than 5% of their 1995 revenues from NASA. Furthermore, the market was able to identify within days after the event that the single firm most likely to be affected by the event was Morton Thiokol Corporation.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::c7939e108522b79349762a4954b8afb5 https://doi.org/10.1016/s1058-3300(96)90010-5 Zobrazit plný text záznamu Full Text from ScienceDirect Plný text