Democracy, political risks and stock market performance

Lehkonen, Heikki; Heimonen, Kari

doi:10.1016/j.jimonfin.2015.06.002

Cited by 151 publications

(114 citation statements)

References 50 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…8, No. 7; F test, at a degree of freedom 2 and level of significance 0.05, revealed that average daily return on EGX30 did not respond to changes in the level of political risk, which goes in line with the finding of Lehkonen and Heimonen (2015), as their study indicated that the effect of political risk on stock returns fades gradually.…”

Section: Examine the Variation And Homogeneity Of Average Daily Retursupporting

confidence: 57%

Political Risks and Their Economic Effects: Evidence from Egypt

Helmy¹,

Wagdi²

2016

IJEF

View full text Add to dashboard Cite

This research aims at studying the effect of political changes on Egyptian economy by studying the direct and indirect effect of political risk index and its sub-indicators on number of important variables such as economic growth, employment, exchange rates, Egyptian Exchange main index (EGX30), foreign investment flows, domestic interest rates, and domestic public debt during the time period from 2006 to 2015 using parametric and nonparametric statistical methods. The study concluded that political risk index and its sub-indicators have had varying effects on financial and real investment and other macroeconomic variables in Egypt; and that achieving a successful economic development process cannot be reached without taking into account determinants of political risk.

show abstract

Section: Examine the Variation And Homogeneity Of Average Daily Retursupporting

confidence: 57%

Political Risks and Their Economic Effects: Evidence from Egypt

Helmy¹,

Wagdi²

2016

IJEF

View full text Add to dashboard Cite

show abstract

“…It is noteworthy that there is another strand of interesting research on political elections, stock market volatility, and stock market performance (see among others, Bialkowski et al 2008; Goodell and Vähämaa 2013; Johnson et al 1999; Kirui et al 2014; Kabiru et al 2015; Lehkonen and Heimonen 2015; Li and Born 2006; Opare 2012; Smales 2014, 2015, 2016). In particular, Bialkowski et al (2008) found evidence that stock market volatility is substantially raised around national elections over 27 industrialised nations.…”

Section: Introductionmentioning

confidence: 99%

“…Meanwhile, Lehkonen and Heimonen (2015) provided evidence that political uncertainty had significant impact on stock market performance of 49 emerging markets.…”

Section: Introductionmentioning

confidence: 99%

The effect of Malaysia general election on stock market returns

Liew¹,

Rowland²

2016

SpringerPlus

View full text Add to dashboard Cite

During the latest episode of general election held in Malaysia, it is observed that the FBMKLCI index was lifted 62.52 points in a day soon after the announcement of election outcome. Moreover, the index registered a highest gain of 96.29 points in the middle of the intra-day trade. This suggests that investors who had got the right direction could make profitable intra-day trading the next trading day of the general election date. Results from statistical analysis uncover significant before-election-effect and after-election-effect from the most recent general elections held in Malaysia. Different subsets of macroeconomic variables are found to have significant role on stock market return depending on the market situation. Remarkably, when there was close fight between the two major political parties during the 2008 and 2013 election years, political uncertainty showed up its negative and significant role in influencing the stock market return. The major implication of these findings is that while investors may seek abnormal returns before and after the next general election, which is around the corner, they will have to pay attention on the influence of macroeconomic variables and political uncertainty on stock market return during the election year.

show abstract

“…This may sound contradictory to the current analysis on such occasions in the Middle East. [135][136][137] However, what we mean here is that in many cases, activities such as mass protests increase the°ow of opportunities and increase fairness, when those are evaluated by the authorities as the wills of the society for more freedom, and better and fairer rules and regulations rather than mere acts of the chronic opponents of the governors. So, such protests are the means to ask for fairer systems but they do not provide any guarantee for fairer systems by themselves.…”

Section: In Particularmentioning

confidence: 99%

From the Physiocrats to Fairness in Nations

Adıgüzel

Flomenbom²,

Çoban

2017

Rep. Adv. Phys. Sci.

View full text Add to dashboard Cite

In this review, work from three centuries of biophysical economics is presented, starting from the physiocrats' early work in biophysical economics in 1755, to the most recent modeling of modern societies with approaches from biophysics and physics, to explain the wealth distribution, opinions and power structures in societies and nations. At the same time, we are also dealing with generalizations, in particular, how to de¯ne and create fairness in nations. The general conclusions emphasize the strength of socio-econo-physics in explaining nations, also in comparison to the other approaches, due to the unbiased starting points and diversity in methods. The results emphasize that fairness is increased with citizens' activities that create smoother income distributions and improving the°ow of opportunities in the nation. Fairness also¯ghts unjust socio-economic biases and suggests advancing citizens-managed organizations.

show abstract

Democracy, political risks and stock market performance

Cited by 151 publications

References 50 publications

Political Risks and Their Economic Effects: Evidence from Egypt

Political Risks and Their Economic Effects: Evidence from Egypt

The effect of Malaysia general election on stock market returns

From the Physiocrats to Fairness in Nations

Contact Info

Product

Resources

About