.../approach Using event study methodology, the authors test how abnormal returns have changed for industrial portfolios in Indonesia following the recent terrorist attacks in the USA, the UK, Spain, India and even Indonesia. The authors adjust the CAPM to test whether systematic risks are altered around...

... returns. Findings In the univariate analysis it was found that earnings explain returns similarly to operating cash flows. With control of earnings quality, the results indicate that earnings' role in explaining contemporaneous abnormal returns remains unchanged when earnings quality is better...