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The Effects of the Political Decisions on The Financial Market

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  • Luciana Simion

Abstract

The evolution of financial markets, and especially of the Romanian capital market, is influenced by several factors, but this paper highlights one of the most important, namely the political factor. The effects of political measures, the issuance or changes of laws, the issuance of ordinance and other measures are felt by the entire economy. To emphasize the connection between the events taking place in the political sector and the evolution of the capital market in Romania, we decided to present the effects of the Emergency Ordinance number 114 issued by the Romanian Government in December 2018, on the evolution of stock indices and the main companies listed at the Bucharest Stock Exchange. In that sense we applied several technical indicators on the indices and stocks charts, highlighting the investor’s reactions on feelings of fear or pessimism and emotional excess that led to important declines.

Suggested Citation

  • Luciana Simion, 2019. "The Effects of the Political Decisions on The Financial Market," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 655-659, August.
    • Handle: RePEc:ovi:oviste:v:xix:y:2019:i:1:p:655-659
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    More about this item

    Keywords

    financial market; Relative Strenght Index; political decisions;
    All these keywords.

    JEL classification:

    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State
    • Y10 - Miscellaneous Categories - - Data: Tables and Charts - - - Data: Tables and Charts

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