Earthquakes in Chile and Peru: How are they reflected in the copper financial market?

IF 7.4 2区经济学 Q1 BUSINESS, FINANCE

Finance Research Letters Pub Date : 2024-11-13 DOI:10.1016/j.frl.2024.106429

Pablo Tapia-Griñen , Boris Pastén-Henríquez , Jorge Sepúlveda-Velásquez

引用次数: 0

Abstract

A large earthquake is a devastating natural disaster affecting life and infrastructure. Copper, vital for combating climate change, sees over 40% production from Chile and Peru. An earthquake near these mines induces uncertainty, boosting copper prices. After analyzing copper returns after large-magnitude earthquakes (2005–2020) in Chile and Peru, event studies revealed positive abnormal returns. These are intensified by media coverage of the earthquake and available stock, which has a short-lived impact on other metals. This outlook will help investors to hedge and cope with such earthquakes.

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智利和秘鲁的地震：铜金融市场如何反映地震？

大地震是一场毁灭性的自然灾害，会对生命和基础设施造成影响。对于应对气候变化至关重要的铜，40% 以上的产量来自智利和秘鲁。这些矿区附近发生地震会引发不确定性，从而推高铜价。在对智利和秘鲁发生大地震（2005-2020 年）后的铜回报率进行分析后，事件研究揭示了正的异常回报率。媒体对地震和可用库存的报道加剧了这种情况，而这对其他金属的影响是短暂的。这一展望将有助于投资者对冲和应对此类地震。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Finance Research Letters BUSINESS, FINANCE-

CiteScore

11.10

自引率

14.40%

发文量

863

期刊介绍： Finance Research Letters welcomes submissions across all areas of finance, aiming for rapid publication of significant new findings. The journal particularly encourages papers that provide insight into the replicability of established results, examine the cross-national applicability of previous findings, challenge existing methodologies, or demonstrate methodological contingencies. Papers are invited in the following areas: Actuarial studies Alternative investments Asset Pricing Bankruptcy and liquidation Banks and other Depository Institutions Behavioral and experimental finance Bibliometric and Scientometric studies of finance Capital budgeting and corporate investment Capital markets and accounting Capital structure and payout policy Commodities Contagion, crises and interdependence Corporate governance Credit and fixed income markets and instruments Derivatives Emerging markets Energy Finance and Energy Markets Financial Econometrics Financial History Financial intermediation and money markets Financial markets and marketplaces Financial Mathematics and Econophysics Financial Regulation and Law Forecasting Frontier market studies International Finance Market efficiency, event studies Mergers, acquisitions and the market for corporate control Micro Finance Institutions Microstructure Non-bank Financial Institutions Personal Finance Portfolio choice and investing Real estate finance and investing Risk SME, Family and Entrepreneurial Finance