Stock Market Reactions to Contagious Animal Disease Outbreaks: An Event Study in Korean Foot-and-Mouth Disease Outbreaks
Article first published online: 16 JUL 2013
© 2013 Wiley Periodicals, Inc.
Volume 29, Issue 4, pages 455–468, Autumn 2013
How to Cite
Pendell, D. L. and Cho, C. (2013), Stock Market Reactions to Contagious Animal Disease Outbreaks: An Event Study in Korean Foot-and-Mouth Disease Outbreaks. Agribusiness, 29: 455–468. doi: 10.1002/agr.21346
- Issue published online: 4 OCT 2013
- Article first published online: 16 JUL 2013
- National Agricultural Cooperative Federation (NACF)
This study examines the market reactions by investors of Korean agribusiness companies following five foot-and-mouth disease (FMD) outbreaks using an event study analysis. The results suggest that the FMD outbreaks caused the stock market to react in both a negative and positive manner to allied companies. The results also suggest that the market reactions were more gradual than instantaneous to the FMD outbreaks. Furthermore, the FMD outbreaks appear to have increased the volatility of the daily returns with the smaller companies facing the largest changes in volatility.