Impact of Geopolitical Risk on the Information Technology, Communication Services and Consumer Staples Sectors of the S&P 500 Index

Gerard Atabong Fossung, Vasileios Chatzis Vovas and A. M. M. Shahiduzzaman Quoreshi
Additional contact information
Gerard Atabong Fossung: Department of Industrial Economics, Blekinge Institute of Technology, 371 41 Karlskrona, Sweden
Vasileios Chatzis Vovas: Department of Industrial Economics, Blekinge Institute of Technology, 371 41 Karlskrona, Sweden
A. M. M. Shahiduzzaman Quoreshi: Department of Industrial Economics, Blekinge Institute of Technology, 371 41 Karlskrona, Sweden

JRFM, 2021, vol. 14, issue 11, 1-32

Abstract: We investigate the effect of geopolitical risk on the returns of firms in the Information Technology, Communication Services, and Consumer Staples sectors within the S&P 500 index. We use the event study methodology and perform more than 17,000 regressions to provide empirical evidence at sector level that geopolitical risk leads to different responses across these three sectors. The response of the Information Technology sector is negative for all event windows under study, except the one spanning 10 days prior to the geopolitical event and 10 days after. The Communication Services sector has positive returns as a result of geopolitical events for all event windows, except the one from the geopolitical event date and 5 days after. The Consumer Staples sector shows a negative impact on geopolitical risk for all event windows except the one from the geopolitical event date and 5 days after, demonstrating a negative correlation to the Communication Services sector.

Keywords: geopolitical risk; event study; S&P 500 index; information technology; communication services; consumer staples (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://www.mdpi.com/1911-8074/14/11/552/pdf (application/pdf)
https://www.mdpi.com/1911-8074/14/11/552/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jjrfmx:v:14:y:2021:i:11:p:552-:d:679927

Access Statistics for this article

JRFM is currently edited by Ms. Chelthy Cheng

More articles in JRFM from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().