ScienceDirect Publication: Finance Research Letters
Sat, 09 Nov 2019 18:01:11 GMT language
Publication date: Available online 9 November 2019
Source: Finance Research Letters
Author(s): Steven Buigut, Burcu Kapar
This study undertakes a comparative analysis of the impact of the Qatar blockade on seven stock markets in GCC countries using event study methodology. Qatar’s economy shows resilience, with its indices significantly reacting negatively to the crisis over the shorter event windows, but less so over longer event window. Saudi Arabia’s banking industry, Dubai’s real estate industry and Abu Dhabi’s energy industry registered positive abnormal return, indicating no serious economic stress to the leading blockading countries. Our findings suggest economic considerations alone is unlikely to be the compelling factor for the feuding parties in the quest for a solution.