Terrorism and acquisition decision: Evidence from real estate investment trusts

IF 7.4 2区经济学 Q1 BUSINESS, FINANCE

Finance Research Letters Pub Date : 2025-04-10 DOI:10.1016/j.frl.2025.107406

Kang Mo Koo , Jeongseop Song

引用次数: 0

Abstract

Amid escalating geopolitical conflicts, terrorism has disrupted economic stability and investor sentiment, necessitating comprehensive investigation. This research examines its impact on REIT acquisitions using major terrorism events as a quasi-natural experiment. We find that terrorism events significantly reduce acquisitions, with nearby REITs experiencing a notable deterrent impact. A dynamic analysis reveals a sharp decline in acquisition activity in the year of terrorism events, with the effect dissipating in subsequent years, indicating a short-lived salience effect. These results highlight the impact of terrorism-induced uncertainty on acquisition decisions and offer insights into behavioral responses to external shocks.

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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

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