TERRORIST ATTACKS AND CORPORATE INVESTMENT IN INDONESIA

  • Dat Thanh Nguyen The University of Danang, Vietnam
  • Dinh Hoang Bach Phan La Trobe University, Australia
  • Van Ky Long Nguyen FPT University, Vietnam
DOI: https://doi.org/10.21098/bemp.v24i1.1283
Keywords: Terrorism;, Corporate investment;, Sectoral analysis;, Firm characteristics;, Economic significance.

Abstract

Using yearly data from 1997 to 2017, this paper studies the effect of terrorism (number of attacks) on corporate investment in Indonesia. Applying an investment-type model, we show that firms reduce their capital expenditure due to an increase in the number of terrorist attacks. On average, a one standard deviation increase in the number of terrorist attacks reduces corporate investment by 9.23%. We also find heterogenous reactions of firms to terrorism across different sectors and different panels based on firm characteristics. Finally, our main results remain consistent after performing several robustness tests.

Downloads

Download data is not yet available.

PlumX Metrics

Published
2021-04-14
How to Cite
Nguyen, D. T., Phan, D., & Nguyen, V. K. L. (2021). TERRORIST ATTACKS AND CORPORATE INVESTMENT IN INDONESIA. Buletin Ekonomi Moneter Dan Perbankan, 24(1), 53-70. https://doi.org/10.21098/bemp.v24i1.1283
Issue
Vol 24 No 1 (2021)
Section
Articles

Copyright (c) 2021 Buletin Ekonomi Moneter dan Perbankan

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

Creative Commons License

Buletin Ekonomi Moneter dan Perbankan / Bulletin of Monetary Economics and Banking is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.