Interest group activity and long-run stock market performance
AbstractThis paper provides evidence that interest group activity is negatively related to aggregate stock market performance. In particular, the Â¯ndings imply that a one percent increase in the number of interest groups in a country is associated with a reduction in average annual stock market returns of roughly 2-5%, and a reduction in the volatility of annual stock returns of roughly 6-14%. In addition, the Â¯ndings indicate that many of the same fundamentals that drive economic growth also explain stock market performance.
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Bibliographic InfoArticle provided by Springer in its journal Public Choice.
Volume (Year): 133 (2007)
Issue (Month): 3 (December)
Contact details of provider:
Web page: http://www.springerlink.com/link.asp?id=100332
Special interest groups; Institutional sclerosis; Stock returns; Volatility; D7; G1; G3; L5; O16;
Other versions of this item:
- Bonnie Wilson & Dennis Coates, 2007. "Interest Group Activity and Long-Run Stock Market Performance," Working Papers 2007-02, Saint Louis University, Department of Economics.
- D7 - Microeconomics - - Analysis of Collective Decision-Making
- G1 - Financial Economics - - General Financial Markets
- G2 - Financial Economics - - Financial Institutions and Services
- L5 - Industrial Organization - - Regulation and Industrial Policy
- O16 - Economic Development, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
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