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. The Capital Goods sector showed an unusualcumulative abnormal return of 3.48% over five days. However the majority of the industries wereimmunized from the London bombings. Although the London terrorist attacks were a major global event, itonly affected one industry in the Australian equity market on the day of the impact.Out of the five attacks studied in this analysis, the Water sector is significantly affected by three of theseevents. Water sector was negatively affected by September 11 and London and was positively affected inBali. Hence Water sector becomes the most sensitive industry around terrorist attacks.
3.5. Mumbai
Although Mumbai's terrorist attacks claimed 207 lives and injured 714 people, the response fromAustralia equity market was immaterial. The empirical testing of this event produced no abnormalperformance results. The Mumbai evidence shows that it is wrong to assume that terrorist attacks willimpact negatively on stock markets. As such investment havens do exist even under terrorist attacks.
4. Conclusion
Studying the impacts of the recent terrorist attacks on the Australian industries, we are able to identifyvarious market effects. September 11 event had the most impact on the Australian market. The majority ofthe industries were down on the day of the event, and just under 40% of the industries were still negativelyaffected 5 days after the event. Approximately one third of the industries studied showed an increase insystematic risk following the 9/11 attacks. Madrid and London bombings, the two European attacks, hadmild negative impacts on the Australian market. Surprisingly the lesson learnt from the Bali attacks waspositive for Australia. With only one sector positively affected, this can be interpreted as weak evidence ofsubstitution effect. Using the Bali bombing evidence, we argue that terrorist attacks do not always nurturenegative sentiment but can also be good for the neighbouring country. Another interesting finding is that
the Mumbai bombing had no effect on the Australian market. The Mumbai evidence can be used todemonstrate that some capital markets can be insensitive to some terrorist attacks, and thus investment
havens may exist even just after an attack. Finally the industry that was most sensitive to the https://www.51lunwen.org/terroristattacks was the Water sector. Australia has not been drastically affected by terrorist attacks post 9/11 andwe can thus conclude that investment haven may exist after those events.

Acknowledgement
The authors wish to acknowledge the invaluable research assistance of Jason Lont, Rebecca Vassil, and
Christian Kypreos in gathering the data and completing some of the empirical analysis. We would also like
to thank George Tawadros, Robert Faff, Richard Heaney and the anonymous reviewers for their assistance
with the methodology, insights and comments that have greatly enhanced the quality of the paper. This
paper was presented at the 14th Annual Global Finance Conference and we thank all participants for their
comments. Any remaining errors, however, are our own.
References
Brown, S.J., Warner, J.B., 1985. Using daily stock returns: the case of event studies. Journal of Financial Economics 14 (1), 3–31.
Cam, M., 2006. The impact of terrorism on United States industry indexes. School of Economics, Finance and Marketing. InRoyal
Melbourne Institute of Technology, Melbourne.
Carter, D.A., Simkins, B.J., 2004. The market's reaction本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。