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Assessing the financial impact of the 2019-2020 bushfires on the Australian stock market
Heuvel, Jeroen van den (2025) Assessing the financial impact of the 2019-2020 bushfires on the Australian stock market.
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Abstract: | This study investigates the financial consequences of the 2019-2020 bushfires on the Australian stock market. This thesis adopts an event study approach in order to calculate the Cumulative Abnormal Returns (CAR) for both directly- and indirectly- affected industries based on an industry-classification used in similarly conducted previous studies. I use stock market data of the ASX-300 companies and use regression analysis to establish how capital markets react to a significant natural disaster like the 2019-2020 Australian Bushfires. A distinction is made between short-term and long-term effects based on two different event windows. Results show no significant long-term effects because of the fires on either directly- or indirectly- affected industries. In the short-term the indirectly- affected industries showed a significant positive effect on market returns. Where previous literature tends to focus on local impacts, I discuss a nation-wide financial impact of the 2019-2020 Bushfires. |
Item Type: | Essay (Bachelor) |
Faculty: | BMS: Behavioural, Management and Social Sciences |
Subject: | 83 economics |
Programme: | International Business Administration BSc (50952) |
Link to this item: | https://purl.utwente.nl/essays/106939 |
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