Accentuating the Impacts of Political News on the Stock Price, Working Capital and Performance: An Empirical Review of Emerging Economy

Muhammad Ateeq ur Rehman (), Syed Ghulam Meran Shah (), Lucian-Ionel Cioca () and Alin Artene ()
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Muhammad Ateeq ur Rehman: 1 Research Institute of Economics and Management, Southwestern University of Finance and Economics, Chengdu, China, Gezhi Building, Liutai Avenue, Wenjiang, 611130 Sichuan Chengdu, People Republic of China. (Corresponding author).
Syed Ghulam Meran Shah: School of Business Administration, Southwestern University of Finance and Economics, Chengdu, China.
Lucian-Ionel Cioca: Faculty of Engineering, Industrial Engineering and Management Department, Lucian Blaga University of Sibiu, Romania; Academy of Romanian Scientists
Alin Artene: Faculty of Management in Production and Transportation, Politehnica University of Timisoara, Romania

Journal for Economic Forecasting, 2021, issue 2, 55-73

Abstract: There is a paucity of academic studies on the impact of political news on stock returns, working capital, and firm performance. This study looks into the impact of previous political news on stock behavior in the future. For the empirical analysis, we used a data set of Pakistani non-financial listed firms from 2009 to 2018. We found a substantial positive effect of political news on the future stock returns, working capital, and firm performance using a portfolio, panel, and two-stage least square regression approach.

Keywords: stock return; political news; firm performance; working capital (search for similar items in EconPapers)
JEL-codes: C58 O4 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (4)

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