Force-Majeure Events and Financial Market’s Behavior

Plastun, O., Plastun, V., 2013, "Force-Majeure Events And Financial Market’s Behavior", Socioekonomicke a humanitni studie. 2013. No 2, vol. 3. pp. 43-59

22 Pages Posted: 1 Oct 2014

See all articles by Alex Plastun

Alex Plastun

Sumy State University

Vyacheslav Plastun

National Bank of Ukraine - Ukrainian Academy of Banking of the National Bank of Ukraine

Date Written: September 29, 2013

Abstract

Efficient market hypothesis fails from time to time. There are many reasons why it happens. We will try to concentrate on one of them – force-majeure events – situations when something important happens unexpectedly. In this case market simply can’t absorb information in one moment. So for some period of time it becomes inefficient and stays inefficient until new information will not be included by the market. Such situations give us possibility to predict the market’s behavior. This is our intuitive assumption. To confirm or refuse it we will analyze the reaction of financial markets to the biggest force-majeure events during last 20 years. Also we will try to develop a trading strategy based on financial market’s reaction to force- majeure events.

Keywords: financial market, force-majeure event, financial market’s efficiency, events study

JEL Classification: G14, G15, G17

Suggested Citation

Plastun, Alex and Plastun, Vyacheslav, Force-Majeure Events and Financial Market’s Behavior (September 29, 2013). Plastun, O., Plastun, V., 2013, "Force-Majeure Events And Financial Market’s Behavior", Socioekonomicke a humanitni studie. 2013. No 2, vol. 3. pp. 43-59, Available at SSRN: https://ssrn.com/abstract=2502865

Alex Plastun (Contact Author)

Sumy State University ( email )

Rymskyi-Korsakov str., 2
Sumy, 40000
Ukraine

Vyacheslav Plastun

National Bank of Ukraine - Ukrainian Academy of Banking of the National Bank of Ukraine ( email )

57, Petropavlivska str.
Sumy, 40030
Ukraine

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
44
Abstract Views
366
PlumX Metrics