From Madrid to Brussels: The impact of four terror attacks on European stock markets

Nicolas SPILIERS NOMA 92441300 From Madrid to Brussels: The impact of four large terror attacks on European stock markets Supervisor : Philippe GRÉGOIRE GEST22MS/GE 2015-2016 Abstract This thesis investigates the effects of the terror attacks of Madrid, London, Paris and Brussels on European stock markets. Historical prices are collected for relevant indices of European, country and sectorial stock markets. Event study methodology is used, a tool to examine if a certain event provoked a stock reaction or not based on statistical significance. Results show that the general indices were significantly impacted by the Madrid and London bombings, while they remained robust after the Paris and Brussels attacks. Still, some effects were noticeable after the latter attacks, however only on the level of certain industries.Master [120] en sciences de gestion, Université catholique de Louvain, 201