The Economics of Mass Shootings: How Investors React

Abstract

While the subject of much research, mass shooting research seldom focuses on the market reaction to firearm manufacturers and related companies. This study explores potential effects on the market returns of four publicly traded firearm manufacturing and related companies following mass shootings from 2014 through September of 2018. Results show that some mass shootings negatively correlated with market returns of such companies, especially over the latter two years. However, given the many mass shootings which showed no significant correlation, future research should evaluate potential pairings with mass shootings that combine to drive such market effects.