Terrorist incidents exert a negative, albeit usually short-lived, impact on markets and equity returns. Given the integration of global financial markets, mega-terrorist events also have a high contagion potential with their shock waves being transmitted across countries and markets. This paper...

We analyse a sample of systemically important European financial intermediaries that fall under the Single Supervisory Mechanism, which is part of the new institutional supervisory architecture of the Eurozone. Theory suggests that herding among financial intermediaries raises cross-sectional...