Doug Bedell — May 31, 2006, 8:43 am

Barriers as Investment Insurance

Some managers may have the impression that the return on investment from vehicle access barriers is nil if they are never used in anger.

That’s not really so. Vehicle barriers are a form of investment insurance. They can be seen, at least in part, as devices to protect stock prices, even if a facility is never attacked.

The link between perimeter security and stock prices is pointed up by researchers at Ohio State University’s Fisher College of Business. “Terrorist attacks targeting specific companies cost those firms an average of $401 million in stock value per incident,” advises an Ascribe report on the Ohio State Study.

The Ohio State team studied 75 terrorist incidents worldwide between 1995 and 2002 and found that stock prices at the target companies dropped an average of 0.83 percent on the day of the incidents.

“There’s a dramatic and reliable negative impact on stock prices as a result of terrorist incidents, and there’s no immediate reversal of that impact,” said Andrew Karolyi, co-author the study’s co-author.

Shareholders can rest easier knowing that facilities in which they have invested are protected by effective perimeter security, including vehicle access barriers.

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