The Australian capital market reaction to natural catastrophes: an empirical analysis using event study method

Li, Siqiwen (2012) The Australian capital market reaction to natural catastrophes: an empirical analysis using event study method. In: Proceedings of Global Accounting, Finance and Economics Conference, pp. 1-19. From: Global Accounting, Finance and Economics Conference, 20-21 February 2012, Melbourne, VIC, Australia.

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Abstract

Natural disasters in the Australia have produced significant and increased damage to local economy and businesses. This study employs the event study methodology to examine the impact of natural disasters on the Australian equity market using the data on daily returns of samples firms that are categorised in the following seven industries: agriculture, banking and insurance, mining, construction, retailing and transportation. The results indicate that natural disasters occurred in the state of Queensland during 2005-2011 (severe storms, hails, cyclones and floods) have evidence negative effects on the Australian equity market with the net effects across industries can be positive and/or negative. Most effects of natural disasters on equity market returns have been felt two days before the day of the event due to weather information disclosure, the day of event, and with some adjustments on the following days, as economic and/or insured loss news are released.

Item ID: 26192
Item Type: Conference Item (Research - E1)
ISBN: 978-1-922069-01-6
Date Deposited: 09 Apr 2013 01:04
FoR Codes: 15 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 1502 Banking, Finance and Investment > 150201 Finance @ 100%
SEO Codes: 90 COMMERCIAL SERVICES AND TOURISM > 9001 Financial Services > 900101 Finance Services @ 60%
96 ENVIRONMENT > 9603 Climate and Climate Change > 960307 Effects of Climate Change and Variability on Australia (excl. Social Impacts) @ 40%
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