 Was the collapse of the communist bloc a game changer in the stock markets? Left-wing vs. right-wing political preferences and stock market developmentGabriel Geller and Maria Guedes Research in International Business and Finance, 2017, vol. 39, issue PA, 423-432 Abstract: The fall of communism in Eastern Europe is a historical event which had political, social and economic repercussions worldwide. Our research examines the association between stock market development and the way that left/right-wing power was exercised. Our results show that this historical event was a game changer! Up until the fall of the communist bloc in 1991, the power of the left was negatively associated with stock market development, however over the post-fall period this association becomes positive. Additionally, our findings also show that the left/right-wing conflict is only determinant in the case of emerging economies, which may be explained by the fact that these countries are less-developed institutionally and economically, and thus provide more scope for political preferences to overcome institutions. Keywords: Left-right position; Political economy; Social democracy; Communist block; Stock market development (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:39:y:2017:i:pa:p:423-432 DOI: 10.1016/j.ribaf.2016.09.002 Access Statistics for this article Research in International Business and Finance is currently edited by T. Lagoarde Segot More articles in Research in International Business and Finance from Elsevier |
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