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This study uses the event study methodology to investigate the economic and financial impact of hurricanes and tropical storms on small island developing states. The study investigates the stock market impact of all hurricanes and tropical storms to make landfall in the Bahamas, the Eastern Caribbean and Jamaica over the period January 1 2000 to June 30 2015. The results indicate that major hurricanes making landfall in Jamaica generate stock market losses that can be ten times greater than the widely reported losses from damage to property and infrastructure. The implication is that failure to account for stock market losses significantly understates the economic and financial impact of natural disasters.
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