Market forces and aircraft safety: a daily stock market return analysis

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dc.contributor.authorRubenking, Brian Harolden
dc.contributor.departmentEconomicsen
dc.date.accessioned2014-03-14T21:47:37Zen
dc.date.adate2010-10-13en
dc.date.available2014-03-14T21:47:37Zen
dc.date.issued1988en
dc.date.rdate2010-10-13en
dc.date.sdate2010-10-13en
dc.description.abstractThe relationship between market forces and product safety in the context of the commercial passenger air travel market was investigated. The analysis was based on a detailed review of the events surrounding three airline accidents, each resulting in a substantial number of fatalities, and the subsequent investigations. The presence or absence of statistically significant market impacts of the accidents on aircraft manufacturers and airlines was determined using a combination of event analysis and the market model of modern finance theory. For a period following each accident, daily and cumulative abnormal stock market returns (i.e., returns not explained by pre-accident market trends) were calculated for the three domestic commercial aircraft manufacturers, the airline involved, and the major airline carrier industry. The results indicated that market forces exist that provide an incentive for manufacturers and airlines to devote resources to product safety, even though it is not possible for consumers to rationally evaluate the level of safety being provided, due to the inherent complexity of the products. The calculated market impacts generally conformed to expectations, in terms of sign and significance, and varied depending on the primary cause of a particular accident. However, the results with respect to the individual airlines involved in each accident did not support the hypotheses in several cases, indicating that other market, regulatory, or judicial factors may have had an impact on the calculated abnormal stock market returns. A description of the background theory, the methodology used, and the detailed results is included.en
dc.description.degreeMaster of Artsen
dc.format.extentvi, 170 leavesen
dc.format.mediumBTDen
dc.format.mimetypeapplication/pdfen
dc.identifier.otheretd-10132010-020233en
dc.identifier.sourceurlhttp://scholar.lib.vt.edu/theses/available/etd-10132010-020233/en
dc.identifier.urihttp://hdl.handle.net/10919/45178en
dc.publisherVirginia Techen
dc.relation.haspartLD5655.V855_1988.R823.pdfen
dc.relation.isformatofOCLC# 19758157en
dc.rightsIn Copyrighten
dc.rights.urihttp://rightsstatements.org/vocab/InC/1.0/en
dc.subject.lccLD5655.V855 1988.R823en
dc.subject.lcshAeronautics -- Safety measuresen
dc.subject.lcshProduct safetyen
dc.subject.lcshStock exchangesen
dc.titleMarket forces and aircraft safety: a daily stock market return analysisen
dc.typeThesisen
dc.type.dcmitypeTexten
thesis.degree.disciplineEconomicsen
thesis.degree.grantorVirginia Polytechnic Institute and State Universityen
thesis.degree.levelmastersen
thesis.degree.nameMaster of Artsen

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