Testing The ‘Black Swan Effect’ on Croatian Stock Market Between 2000 and 2013

Anita Peša and Ana Brajković

MPRA Paper from University Library of Munich, Germany

Abstract: We tested the economic activity and stock exchange of Croatia as a new country of European Union (EU) in order to investigate the ‘Black Swan effect’ from 2000 to 2013. The empirical findings obtained in application of OLS methodology and Chow breaking point test provide evidence and show that resignation of the Croatian ex-Prime Minister did lead country successfully to EU. Also, ‘The Black Swan’ event, being unpredictable and having huge impact on political and economic environment in Croatia obtained through CROBEX, had effect on Croatian stock exchange indices. Authors conclude that, the resignation was connected to one of the first significant cases of corruption in Croatia which had a negative impact on the economic development of the country in general, dealing at the same time with global recession.

Keywords: financial integration; stock exchange; world crisis; corruption; Black Swan (search for similar items in EconPapers)
JEL-codes: E44 F36 (search for similar items in EconPapers)
Date: 2015, Revised 2015
New Economics Papers: this item is included in nep-mac and nep-tra
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Citations: View citations in EconPapers (1)

Published in Emerging Markets Journal 1.6(2016): pp. 1-16

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https://mpra.ub.uni-muenchen.de/69223/9/MPRA_paper_69223.pdf original version (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:69223

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