Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/119393
Authors: 
Kollias, Christos
Papadamou, Stephanos
Year of Publication: 
2012
Series/Report no.: 
Economics of Security Working Paper 67
Abstract: 
Financial markets react to major political events. The two nuclear tests conducted by North Korea in 2006 and 2009 were a sober confirmation of the nuclear weapon capacity of this state with the concomitant potential security threat this posed for the stability of the greater region. We examine how ten regional stock exchanges and currency markets reacted to this security development and these two specific events. The results, although not uniform across all countries and markets, revealed a greater adverse effect in the case of the second of the two tests. On the whole, the adverse effects on the stock exchanges were short lived.
Subjects: 
nuclear tests and financial markets
event studies
GARCH models
quantile regression
JEL: 
H56
G1
G14
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.