A gain through pain
: an event study on the invasion of Gaza

  • Luca Morniroli (Student)

Student thesis: Master's Thesis

Abstract

This Thesis analyzes the influence of the invasion of Gaza made by Israel on the 27th of October on the aerospace and defence industry, using an event study. The research uses this methodology to examine the uneven returns of significant companies to assess market responses. The results indicate that there was initially a favourable response from investors, as evidenced by the increase in average abnormal returns (AAR) after the events and a positive significance around the immediate days of the 27th of October. This study enriches the existing body of knowledge, offering valuable insights into the influence of geopolitical tensions on market dynamics and adding new information in a delicate chapter, such as the Palestine and Israel situation. It emphasizes the importance of carefully considering such conflicts' immediate and long-term effects. The study provides valuable insights for investors and policymakers by highlighting the ethical ramifications of defence investments in the presence of geopolitical disputes, and it mostly makes people think about how, based on the suffering of people, there are sectors that increase their revenues.
Date of Award18 Oct 2024
Original languageEnglish
Awarding Institution
  • Universidade Católica Portuguesa
SupervisorJosé D. Garcia Revelo (Supervisor)

Keywords

  • Aerospace & defense
  • War
  • Abnormal returns
  • Palestine-Israel conflict
  • Gaza

Designation

  • Mestrado em Finanças

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