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Article Version


Publication Date



This paper examines abnormal returns and changes in risk for transportation firms immediately around the Iraqi invasion of Kuwait. Further, it tests whether the variation in the abnormal returns can be explained cross-sectionally with standard financial and industry-descriptive variables. The results indicate that transportation firms suffered a −2.09% abnormal return and increases in unsystematic risk. The cross sectional regression explains 31% of the variation in the abnormal returns, with firm size, liquidity, leverage, percentage of sales to the Department of Defense, and dummy variables denoting firms producing recreational vehicles or owning oil-producing subsidiaries contributing significantly to the regression.


Copyright 1997 Elsevier

“NOTICE: this is the author’s version of a work that was accepted for publication in Journal of Economics and Business. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Journal of Economics and Business 49, no. 2 (1997): 193-204. DOI# 10.1016/S0148-6195(97)81515-9

Publication Title

Journal of Economics and Business

Published Citation

Bradford, Bruce M., and H. David Robison. "Abnormal returns, risk, and financial statement data: The case of the Iraqi invasion of Kuwait." Journal of Economics and Business 49, no. 2 (1997): 193-204.



Peer Reviewed