Citation

Coleman L. Appl. Econ. 2012; 44(31): 4087-4099.

Copyright

(Copyright © 2012, Informa - Taylor and Francis Group)

DOI

10.1080/00036846.2011.587778

PMID

unavailable

Abstract

This article uses the nine major bombings since 1998 that have been attributed to Al Qaida to examine market efficiency, including a test of rumours that investors traded with advance knowledge of attacks. Analysis of these related, but individually unexpected, events confirms markets are semi-strong efficient: it now takes well under a trading day to fully price in a completely unexpected attack. On balance, markets also proved strongly efficient with no conclusive evidence of insider trading.

Language: en

Keywords

9-11; event studies; forensic finance; G14; G15; insider trading; terrorist attacks