Olympic Games, terrorism and their impact on the London and Paris stock exchanges

Kavetsos, G. & Szymanski, S. (2008). Olympic Games, terrorism and their impact on the London and Paris stock exchanges. Revue d’Economie Politique, 118(2), 189-206.
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This paper examines the impact of the announcement of the 2012 Olympic Games and the July 7th London terrorist attacks on the indices of the London and Paris Stock Exchanges. Using a GARCH ( 1,1 ) − t specification, we are able to show that both events are estimated to have the expected sign, whereas the degree of significance varies depending on the specification of the terrorism dummy variable used.

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