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

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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)

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.

Suggested Citation

  • Muhammad Ateeq ur REHMAN & Syed Ghulam Meran SHAH & Lucian-Ionel CIOCA & Alin ARTENE, 2021. "Accentuating the Impacts of Political News on the Stock Price, Working Capital and Performance: An Empirical Review of Emerging Economy," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 55-73, June.
    • Handle: RePEc:rjr:romjef:v::y:2021:i:2:p:55-73
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    References listed on IDEAS

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    3. Marian-Pompiliu Cristescu & Raluca-Andreea Nerișanu & Maria Flori & Florin Stoica & Florentina Laura Stoica, 2021. "Analysing the Stock Market as an Economic Lever, Using a Qualitative and a Quantitative Model," Mathematics, MDPI, vol. 9(19), pages 1-19, September.

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    More about this item

    Keywords

    stock return; political news; firm performance; working capital;
    All these keywords.

    JEL classification:

    • C58 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Financial Econometrics
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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