Stock Returns, Productivity, and Corruption in Eight European Fast-Emerging Markets

Carlo Bellavite Pellegrini (), Bruno Sergi and Emiliano Sironi

MPRA Paper from University Library of Munich, Germany

Abstract: This article addresses the impact of productivity, corruption, and trade openness on the stock returns of 265 industrial companies listed in eight Eastern European fast-emerging markets, over the 2004–2013 period. Through a three-factor model that includes both measures at firm level and macro-level control variables, our findings suggest that country corruption index is negatively correlated with the total annual return of the stocks of the listed industrial companies of our sample. Moreover, the most productive firms are featured by higher stock returns, while leverage seems not to be a key predictor of stock returns. In addition, the article uncovers innovative evidence about trade openness that is negatively correlated with stock returns due to its connection with the recent financial crisis.

Keywords: productivity; stock returns; corruption (search for similar items in EconPapers)
JEL-codes: G3 (search for similar items in EconPapers)
Date: 2015, Revised 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published in Thunderbird International Business Review (2015): pp. 1-8

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/104651/1/MPRA_paper_104651.pdf original version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:104651

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().