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Ohio State: Terrorism and the Stock Market

Authors: Andrew Karoly, and Todolfo Martell
May 31, 2006

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In their working paper, Andrew Karoly and Todolfo Martell examine the impact on stock prices in the aftermath of terrorist attacks. The study identifies 75 attacks on publicly traded firms between 1995 and 2002 from the Counterterrorism Office of the U.S. Department of State and elucidates the market effect of these attacks. A comprehensive understanding of the nature of terrorism and its effects is integral to the prevention of such attacks.

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