Politically induced uncertainty and asset-market valuation

Jan Fałkowski, Przemysław J. Kurek and Jacek Lewkowicz

European Journal of Political Economy, 2024, vol. 84, issue C

Abstract: We study the consequences of politically induced asset-market uncertainty. Our data are from Poland, where the imposition of a new resource tax was vaguely announced in a single sentence by the prime minister in November 2011. The tax concerned a single company, one of the world's leading copper and silver producers. We show how the announcement, besides imposing losses as expected on shareholders, introduced uncertainty into asset-market valuation.

Keywords: Tax announcement; Stocks; Mining industry; Poland (search for similar items in EconPapers)
JEL-codes: D72 H25 L72 P26 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:poleco:v:84:y:2024:i:c:s017626802300071x

DOI: 10.1016/j.ejpoleco.2023.102427

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