Anmerkungen:
In: The Journal of Economic History, Forthcoming
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments October 31, 2019 erstellt
Beschreibung:
With two news-based measures on war, I document that managers mitigated war risk through dividend cuts, arguably to establish a war chest. Moreover, I find that companies postponed their initial public offerings and that foreign companies were more likely to delist after the onset of wars. Investors reacted negatively to the increase in war news coverage. There is evidence of mean-reversion after a threat of war and a negative drift following an act of war. Finally, I highlight the importance of proximity to military conflicts. In general, the evidence indicates that both managers and investors became more risk averse as a consequence of war news