Natural disaster-induced Australian equity market reaction: discrimination across industries

Li, Siqiwen (2013) Natural disaster-induced Australian equity market reaction: discrimination across industries. Journal of Law & Financial Management, 12 (1). pp. 18-28.

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Natural disasters in Australia have caused significant damage to the local economy and businesses. This paper employs the event study methodology to examine the natural disaster-induced equity market reaction using daily equity return of 32 Australian firms within the following seven major industries in the State of Queensland: agriculture, banking, insurance, mining, construction, retailing and transportation. The result indicates that the 2005-2011 natural disasters in Queensland (severe storms, hail, cyclones and floods) have had evident negative effects on the Australian equity market, whereas the net effects across industries may be either positive or negative to different extents. Most of the effects of natural disasters on equity market returns have been statistically evident two days prior to the days of the events due to weather information disclosures, the days of the events and, with some adjustments, the days following the event, as economic and/or insured loss information is released.

Item ID: 27898
Item Type: Article (Research - C1)
ISSN: 1446-6899
Funders: James Cook University
Date Deposited: 05 Jul 2013 05:07
FoR Codes: 15 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 1502 Banking, Finance and Investment > 150205 Investment and Risk Management @ 80%
05 ENVIRONMENTAL SCIENCES > 0502 Environmental Science and Management > 050204 Environmental Impact Assessment @ 20%
SEO Codes: 90 COMMERCIAL SERVICES AND TOURISM > 9001 Financial Services > 900101 Finance Services @ 80%
96 ENVIRONMENT > 9603 Climate and Climate Change > 960307 Effects of Climate Change and Variability on Australia (excl. Social Impacts) @ 20%
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