Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/194698 
Year of Publication: 
2017
Citation: 
[Journal:] Cogent Economics & Finance [ISSN:] 2332-2039 [Volume:] 5 [Issue:] 1 [Publisher:] Taylor & Francis [Place:] Abingdon [Year:] 2017 [Pages:] 1-10
Publisher: 
Taylor & Francis, Abingdon
Abstract: 
Mass shootings are an all too common event in the United States. While these tragedies are universally condemned, the extent to which they affect markets is less understood. Using event study methodology, this study analyzes how three publicly traded small arms companies, Smith & Wesson, Sturm Ruger, and the Brazilian manufacturer Taurus, react in the aftermath of six mass shootings from 2007 to 2013. Taurus is included in the sample given its heavy dependence on the US market, as well as to increase sample size given the dearth of publicly traded arms companies worldwide. The aggregate results suggest that these events do significantly disrupt returns in the arms industry, suggesting that shareholders are influenced by these events. The evidence for market disruptions is particularly strong when the sample is limited to the deadliest Virginia Tech and Sandy Hook shootings.
Subjects: 
firearms companies
mass shooting
event study
abnormal returns
multifactor model
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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