Political instability and stock market returns: Evidence from OECD countries
Dimitrios Asteriou () and
Antonios Sarantidis ()
Economics and Business Letters, 2016, vol. 5, issue 4, 113-124
Â This paper examines the relationship between political instability and stock market returns using quarterly time series data from 1993 to 2013. In this paper, stock market returns are defined as the returns of the general stock market index and banking index for 18 OECD countries. Five different political instability indicators are constructed in order to measure political uncertainty. The empirical part utilizes the EFA, PCA and GARCH-M methodologies. The findings indicate a direct and an indirect impact between the PI indicators and the returns of the Banking Index and the Overall Stock Market Index. The research contributes to the literature by providing empirical evidence to policy makers on the effects that political instability has on stock markets.Â
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ove:journl:aid:11278
Access Statistics for this article
Economics and Business Letters is currently edited by Francisco J. Delgado
More articles in Economics and Business Letters from Oviedo University Press Contact information at EDIRC.
Series data maintained by Francisco J. Delgado ().