Responses of US equity market sectors to the Silicon Valley Bank implosion

Imran Yousaf and John W. Goodell

Finance Research Letters, 2023, vol. 55, issue PB

Abstract: Considering the new role of social media to quickly effect bank runs, it is critical to investigate the impact of the Silicon Valley Bank (SVB) collapse on US market sectors. Using an event study approach, we identify significant (negative) abnormal returns on the event date only for the financial, materials, and real estate sectors, with no sector reactions for the pre-event period. The most significant impact, not surprisingly, was to the financial sector. Results are consistent with the SVB failure not being anticipated by investors and subsequent impacts to most sectors being shared at the market level with limited heterogeneity.

Keywords: Bank runs; Banking crises; Financial stability; US market sectors; SVB failure (search for similar items in EconPapers)
JEL-codes: G11 G14 G15 H25 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (28)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:55:y:2023:i:pb:s1544612323003069

DOI: 10.1016/j.frl.2023.103934

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