Is Investors’ Psychology Affected Due to a Potential Unexpected Environmental Disaster?

Journal of Risk and Financial Management

George Halkos¹  Argyro Zisiadou¹ 

[1] Laboratory of Operations Research, Department of Economics, University of Thessaly, 38333 Volos, Greece;

关键词: na-tech;    systematic risk;    market reaction;    unexpected events;    investing;   

DOI  :  10.3390/jrfm13070151

来源: DOAJ

【 摘 要 】

The purpose of this paper is to approach the way investors perceive the risk associated with unexpected environmental disasters. For that reason, we examine certain types of natural and technological disasters, also known as “na-tech”. Based on the existing relevant literature and historical sources, the most common types of such disasters are geophysical and industrial environmental disasters. After providing evidence of the historical evolution of the na-tech events and a brief description of the events included in the sample, we estimate the systematic risk of assets connected to these events. The goal is to capture possible abnormalities as well as to observe investors’ psychology of risk after the occurrence of an unexpected event. Finally, we examine whether macroeconomic factors may affect those abnormalities. The empirical findings indicate that the cases we examined did not cause significant cumulative abnormal returns. Moreover, some events caused an increase in systematic risk while surprisingly some others reduced risk, showing that investors tend to support a country and/or corporation due to their reputation.

【 授权许可】

Unknown