Shoot-at-will: the effect of mass-shootings on US small gun manufacturers

Abstract

Mass shootings have become a frequent occurrence in the US, attracting extensive media coverage and provoking public condemnation. The fi nancial impact of such tragedies are seldom examined. In this study, we use an event study methodology to analyse the impact of 83 mass shootings on the value of 15 US gun and ammunition manufacturers from 1982 to 2017. In contrast to previous fi ndings, we fi nd no statistically signi cant impact on the returns of these fi rms, suggesting investors no longer fear the threat of restrictive regulation that may negatively affect these businesses.