Political uncertainty and analysts’ forecasts: International evidence

Narjess Boubakri, Lobna Bouslimi and Rui Zhong ()

Journal of Financial Stability, 2022, vol. 59, issue C

Abstract: This study examines the influence of political uncertainty proxied by national election on analysts’ forecasts across 28 countries. We find analysts’ forecasts’ accuracy decreases, and the optimism increases in national election years compared to these in non-election years. Further analysis supports information opacity, local political connections, politically sensitives industries and the quality of institutions channels through which political uncertainty affects the analysts’ forecasts.

Keywords: Political uncertainty; National elections; Analysts’ forecasts; Information asymmetry; Political connection (search for similar items in EconPapers)
JEL-codes: G17 G28 P16 P47 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finsta:v:59:y:2022:i:c:s1572308922000018

DOI: 10.1016/j.jfs.2022.100971

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