The domino effect: Analyzing the impact of Silicon Valley Bank's fall on top equity indices around the world

Miklesh Prasad Yadav, Amar Rao, Mohammad Zoynul Abedin, Sabia Tabassum and Brian Lucey

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

Abstract: This study used event study methodology to analyze the impact of Silicon Valley Bank (SVB) fall on the top nine global equity indices from 6 September 2022 to 22 March 2023. The steep sell-off of equities due to the bank run on March 10, 2023, was the major reason behind this movement. The study suggests that the failure of a major financial institution like SVB can have a significant impact on the global equity markets, with contagion effects spreading across borders.

Keywords: Abnormal return; Event study; Equity indices; Market efficiency; Silicon Valley bank (search for similar items in EconPapers)
JEL-codes: C10 F65 G12 G14 G15 G21 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:55:y:2023:i:pb:s1544612323003240

DOI: 10.1016/j.frl.2023.103952

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