The impact of disasters and terrorism on the stock market

The growing number of negative events worldwide, among them natural disasters, artificial disasters and terrorism, has led the public to focus attention on the impact of such events on the economy and the capital market. This research examines the effects of natural disasters, artificial disasters and terrorism on the stock market in order to reveal profit opportunities. In this research, we collected data on 344 significant events that received media attention and examined the differences between the three types of events using the Pessimism Index. Some of the results include the following: (1) natural disasters cause the greatest damage to the economy, whereas terrorism causes the least damage; (2) natural disasters exhibit the highest level of severity, whereas artificial disasters have the lowest severity. The research reveals some opportunities for investors to obtain arbitrage profits. During natural disasters, the stock index decreases on the day of the events and on the two subsequent days. Therefore, investors should short sell the index on the day of the disaster and hold it for 2 days. On the contrary, during artificial disasters or terrorist incidents, the index drops only on the day of the event and the next day, so investors should short sell the index on the day of the disaster and hold it until the end of the first working day following the incident

The Influence of Airbnb Announcements on North American Capital Markets: Insights for Stakeholders

This research investigates the burgeoning peer-to-peer (P2P) economy, exemplified by platforms such as Airbnb, and its implications within the North American context. The study focuses on understanding the repercussions of Airbnb announcements on capital markets, concentrating specifically on the travel and tourism sector and the real estate sector. The findings unveil a discernible augmentation in index returns preceding the announcement’s publication in both sectors. However, a notable divergence manifests post-announcement: while the real estate sector sustains an upward trajectory in returns, the travel and tourism sector experiences a post-publication decline. These results underscore the strategic advantage available to investors with early access to Airbnb announcements, enabling them to capitalize on excess profits. Furthermore, the broader investor community can leverage the insights gleaned from Airbnb announcements for financial gains. A nuanced examination of regression results reveals the substantial impact of macroeconomic variables on index returns in both the travel and tourism sector and the real estate sector. These insights contribute to a more nuanced understanding of the intricate dynamics shaping these economic domains

The Double-Peaked Shape of the Laffer Curve in the Case of the Inverted S-Shaped Labor Supply Curve

The classical backward bending of the labor supply curve has been extended to the case of the inverted S-shaped labor supply curve during the last three decades. According to this extension, at very low net wage levels near the subsistence income level, the positive shape of the supply curve of labor may also be curved backward and become negatively sloped. A decrease in the low wage rate requires an increase in the labor supply, to maintain a minimum income level for survival. The S-shaped curve leads to a double-peaked Laffer curve, which also includes the possibility of three tax rates, each of which enables the collection of the same tax revenue. This may occur in contrast to the traditional single-peaked Laffer curve, which has two tax rates with the same revenues

Market reactions to announcements

   In recent years, the peer-to-peer (P2P) economy has attracted attention as a new model that leverages technology to allow people to exchange goods and services. The most common example of the P2P economy is Airbnb, which has spread to many parts of the world, including the Asia Pacific region. This study investigates the impact of announcements about the Asia Pacific region published on Airbnb on the travel and tourism industry, and the real estate industry. Using six parametric and non-parametric tests and additional regressions, I tested the effect of 80 such announcements about the Asia Pacific area on the travel and tourism industry and the real estate industry in the region. While investors adjust their profit strategy based on expectations about the impact of the announcements on both industries, the effect is not uniform. The announcements negatively affect the travel and tourism industry, but have a positive impact on the real estate industry. In addition, the more precise the announcement about a specific location, the stronger the returns in both industries. Finally, in the real estate industry, announcements about poor countries in the region and announcements published in later years have a stronger positive effect.</p

<b>Uber's Impact on Asia Pacific</b>

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<b>Uber's Global Strategy: Evaluating Financial Market Reactions Across Economic Statuses and Regions</b>

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