 Political uncertainty and stock performance: Evidence from sessions of the Chinese Provincial People’s CongressWei Yu, Ying Zheng and Jianjun Jia Research in International Business and Finance, 2025, vol. 75, issue C Abstract: This study examines stock behavior around sessions of the Chinese Provincial People’s Congress (PPC). We find that listed companies undergo a decrease in stock returns and an increase in return volatility around PPC sessions that introduce changes in government policies, regardless of whether they involve gubernatorial elections. We find some evidences the beneficial government policies have positive effects on stock performance during the PPC periods using the real estate industry sample. Firms have higher stock returns and lower stock volatility during PPC sessions that have less political uncertainty. The effects of the PPC sessions are more prominent during the first year of the five-year plans and less prominent for state-owned listed firms, firms with PPC deputy Chairman or CEOs, or firms in regulated industries. Keywords: Stock Price; Political Uncertainty; Sessions of the Chinese Provincial People’s Congress (PPC); Gubernatorial Elections; China (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:75:y:2025:i:c:s0275531924005191 DOI: 10.1016/j.ribaf.2024.102726 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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