Effect of Qatar diplomatic and economic isolation on Qatar stock market volatility: an event study approach
Date
2020
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Publisher
Routledge
Abstract
In this study we assess the impact of the political and economic blockade of Qatar, as well as four other events related to the blockade on Qatar’s stock market volatility. One of these events occurred before the June 5 2017 blockade while the others occurred after. We use volatility event-study approach to test the abnormal unsystematic volatility in stock returns. We reveal that stock market volatility has reacted significantly to the blockade as well as to other related events that happened before and after the blockade. Our findings highlight the importance of continuing, and even bolstering, the ongoing mediation efforts to reduce the risk of a resurgence of hostilities. As there is no resolution yet, there is still a risk of future market volatility and thus changes in portfolio allocation and investment decisions not only in Qatar but also in the GCC. © 2020, © 2020 Informa UK Limited, trading as Taylor & Francis Group.
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This article is not available at CUD collection. The version of scholarly record of this article paper is published in Applied Economics (2020), available online at: https://doi.org/10.1080/00036846.2020.1781776
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Keywords
Comparative analysis, event study, Qatar blockade, volatility
Citation
Kapar, B., & Buigut, S. (2020). Effect of Qatar diplomatic and economic isolation on Qatar stock market volatility: An event study approach. Applied Economics, 52(55), 6022-6030. doi:10.1080/00036846.2020.1781776