Perceptions of the Threat to National Security and the Stock Market

51 Pages Posted: 9 Oct 2019 Last revised: 22 Mar 2021

See all articles by Ayman Omar

Ayman Omar

University of Leicester

Brendan Lambe

Alfaisal University

Tomasz Piotr Wisniewski

Open University, UK

Date Written: September 28, 2019


This paper investigates the impact of national security concerns on equity valuations in the U.S. from 1985 to 2018. While existing literature focuses on actual events of a violent nature, our process is different. We examine the effect of continuous indices derived from media coverage of these issues. Our analysis documents that journalistic reportage can provoke significant changes in the first and, to a certain extent, the second moment of U.S. equity return distribution. These changes extend even beyond the impact of events that transpired. Furthermore, business confidence also appears to be undermined by media coverage of threats to the nation and its citizenry.

Keywords: National Security, Equities, Economic Policy Uncertainty

JEL Classification: G12, G14

Suggested Citation

Omar, Ayman and Lambe, Brendan and Wisniewski, Tomasz Piotr, Perceptions of the Threat to National Security and the Stock Market (September 28, 2019). Available at SSRN: or

Ayman Omar

University of Leicester ( email )

Fielding Johnson Building
University Road
Leicester, LE1 7RH
United Kingdom

Brendan Lambe

Alfaisal University ( email )

United Kingdom

Tomasz Piotr Wisniewski (Contact Author)

Open University, UK ( email )

Walton Hall
Milton Keynes, Buckinghamshire MK7 6AA
United Kingdom

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