The Red Sea Conflict and Market Reactions: Examining the Role of Military Strength in Financial Markets DOI
Rizky Yudaruddin, Dadang Lesmana, İbrahim Halil Ekşi̇

и другие.

Peace Economics Peace Science and Public Policy, Год журнала: 2025, Номер unknown

Опубликована: Апрель 15, 2025

Abstract This study examines market reactions to the US-Houthi conflict on January 11, 2024, across various markets, regions, and industries within financial sector, emphasizing role of military strength in shaping global responses. An event methodology is applied a sample 3,239 sector companies, observing over multiple windows: 15-day pre-event phase post-event surrounding announcement. Cross-sectional analysis conducted assess how impacts reactions. The results indicate significant vulnerability conflict, particularly during period from day phase, with developed markets experiencing greatest impact. While American showed mixed responses, European, Middle Eastern, African faced notable negative effects due disrupted trade routes; Asian also reactions, though lesser extent. banking industry recorded most adverse reaction emerged as critical factor influencing investor behavior response conflict. These findings highlight need for policymakers enhance stability by considering route security risk mitigation strategies, times geopolitical uncertainty, such early 2024.

Язык: Английский

Disruptions in global trade routes: market reactions to the US–Houthi conflict in the consumer cyclical sector DOI
Rizky Yudaruddin, Dadang Lesmana, Yanzil Azizil Yudaruddin

и другие.

International Journal of Development Issues, Год журнала: 2025, Номер unknown

Опубликована: Янв. 13, 2025

Purpose This study aims to investigate the market reaction in cyclical consumer sector US–Houthi conflict. Furthermore, authors explore impact of this conflict on reactions by and region. Design/methodology/approach Using an event methodology, paper analyze a sample 1,973 companies. used multiple windows, including 15-day period before invasion announcement as preinvasion after postinvasion event. Findings The find that pre war, tended show positive reaction, but toward day until post event, actually reacted significantly negatively conflict, especially developed developing markets. Asia Pacific is feels most negative from compared other terms industry types staples sector, Food Tobacco Personal Household Products Services felt impact, although majority all industries negatively. Originality/value focuses has not been extensively studied context reactions. Unlike previous research, specifically examines emphasizing significance trade route disruptions, particularly Suez Canal, global By providing insights into how such geopolitical events affect different regions industries, offers valuable guidance for policymakers managers mitigating adverse effects risks stability.

Язык: Английский

Процитировано

1

Market reaction to dividend announcements during COVID-19 pandemic in ASEAN countries DOI
Rizky Yudaruddin, Dadang Lesmana

Asia-Pacific Journal of Business Administration, Год журнала: 2025, Номер unknown

Опубликована: Янв. 10, 2025

Purpose This study aims to investigate the market reaction dividend announcements in five ASEAN countries during COVID-19 pandemic. We focus on sectors that are less vulnerable pandemic, such as communication services, consumer staples, healthcare and information technology. Design/methodology/approach A sample of 5,648 from listed companies is utilized for this study, employing event method. The measured using cumulative abnormal return (CAR), cross-section regression employed examine determinants reaction. Findings findings reveal a significant positive technology following announcement an increase or decrease dividends. These results imply serve signal investors amidst However, does not respond significantly decreased constant dividends pandemic they perceived unfavorable signals. paper also highlights role tool through which express optimism facing challenges posed by their investors. Practical implications Originality/value offers novel cross-country analysis region, considering both post-pandemic periods focusing impacted COVID-19. Unlike previous studies limited single-country sector-specific analyses, our research uniquely addresses broader context includes insights into “new normal” period.

Язык: Английский

Процитировано

0

Financial markets' reactions to the 2023 Israel war: an empirical perspective from stock markets DOI
Ghadi Saad

Kybernetes, Год журнала: 2025, Номер unknown

Опубликована: Март 3, 2025

Purpose This study aims to underline the unique reactions of stock markets event war. The paper undertakes a comparative assessment impact ongoing Israel war on selected indexes leading markets. Design/methodology/approach research design this is based autoregressive conditional heteroscedasticity models (Bollerslev, 1986; Nelson, 1991) examine returns and volatilities, methodology (Fama et al. , 1969) assess abnormal surrounding days quantile regression approach (Koenker Bassett, 1978) further appraise robustness results. dataset includes principal exchanges collected from international region Findings results indicated significant effect volatility cumulative revealed several distinctive findings. Among them, two seminal indications can be pointed out. First, considerable declines were identified at window [2, 11] for entire sample capital Second, salient number established positive during post-event period outcome suggests that profits are possible instantaneously after Further, analysis demonstrated not showing substantial responses war, regional disclosed effects. In nutshell, in line with efficient market hypothesis. They documented significance wars Research limitations/implications findings notable investment decisions portfolio management. Evidence proposed performance advanced favorable Investors participants adopt output enhance strategies achieve sustainable returns. highlighted necessity policies support financial activities displayed damages due Such call close collaborations between policymakers business leaders. Besides, limitation possibly exclusion control variables lack data. Originality/value considered first originate current exchanges. it challenges have durable negative overall Therefore, core contribute prominent evidence steadily growing literature wartime.

Язык: Английский

Процитировано

0

Monte Carlo Simulations for Resolving Verifiability Paradoxes in Forecast Risk Management and Corporate Treasury Applications DOI Creative Commons
Martin Pavlík, Grzegorz Michalski

International Journal of Financial Studies, Год журнала: 2025, Номер 13(2), С. 49 - 49

Опубликована: Апрель 1, 2025

Forecast risk management is central to the financial process. This study aims apply Monte Carlo simulation solve three classic probabilistic paradoxes and discuss their implementation in corporate management. The article presents as an advanced tool for processes. method allows a comprehensive analysis of forecasts, making it possible assess potential errors cash flow forecasts predict value treasury growth under various future scenarios. In investment decision-making process, supports evaluation effectiveness projects by calculating expected net identifying risks associated with investments, allowing more informed decisions be made project implementation. used reducing volatility, which contributes lowering cost capital increasing company. Simulation also enables accurate liquidity planning, including forecasting availability determining appropriate reserves based on probability distributions. credit interest rate risk, enabling impact economic scenarios company’s obligations. context strategic extension decision tree analysis, where subsequent are results earlier ones. Creating models simulations makes take into account random variables key indicators, such free (FCF). Compared traditional methods, offers detailed precise approach decision-making, providing companies vital information uncertainty. emphasizes that use not only enhances management, but long-term value. entire process able move predicting flows discounted at capital. We both numerical analytical methods veridical paradoxes. Veridical type paradox result counterintuitive, turns out true after careful examination. means although initial reasoning may lead wrong conclusion, correct mathematical or logical confirms correctness results. An example Monty Hall’s problem, intuitive answer suggests equal success, while shows changing increases chances winning. method. following were used: conditional probability, Bayes’ rule multiple conditions. solved truth-type discovered why Hall problem was so widely discussed 1990s. differentiated problems using different numbers doors prizes.

Язык: Английский

Процитировано

0

The Red Sea Conflict and Market Reactions: Examining the Role of Military Strength in Financial Markets DOI
Rizky Yudaruddin, Dadang Lesmana, İbrahim Halil Ekşi̇

и другие.

Peace Economics Peace Science and Public Policy, Год журнала: 2025, Номер unknown

Опубликована: Апрель 15, 2025

Abstract This study examines market reactions to the US-Houthi conflict on January 11, 2024, across various markets, regions, and industries within financial sector, emphasizing role of military strength in shaping global responses. An event methodology is applied a sample 3,239 sector companies, observing over multiple windows: 15-day pre-event phase post-event surrounding announcement. Cross-sectional analysis conducted assess how impacts reactions. The results indicate significant vulnerability conflict, particularly during period from day phase, with developed markets experiencing greatest impact. While American showed mixed responses, European, Middle Eastern, African faced notable negative effects due disrupted trade routes; Asian also reactions, though lesser extent. banking industry recorded most adverse reaction emerged as critical factor influencing investor behavior response conflict. These findings highlight need for policymakers enhance stability by considering route security risk mitigation strategies, times geopolitical uncertainty, such early 2024.

Язык: Английский

Процитировано

0