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Understanding Crime, Political Uncertainty and Stock Market Returns

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Author Info
Juan Carlos Franco Laverde
Maria Estela Varua
Arlene Garces-Ozanne

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Abstract

Colombia’s economy has experienced positive growth over the past few years despite the incidence of serious armed conflict in the region. However, the Colombia of today still faces a significant degree of sociopolitical instability as a result of organised crime associated with drug trafficking, the leftist guerrilla attacks and the right-wing paramilitary group. This paper examines the significance of organised crime and political uncertainty for the amalgamated Colombian Stock Exchange. Empirical evidence indicates that organised crime and political uncertainty negatively affect stock market returns and volatility.

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File URL: http://www.world-economics-journal.com/Contents/ArticleOverview.aspx?ID=378
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Publisher Info
Article provided by World Economics, Economic & Financial Publishing, PO Box 69, Henley-on-Thames, Oxfordshire, United Kingdom, RG9 1GB in its journal World Economics Journal.

Volume (Year): 10 (2009)
Issue (Month): 2 (April)
Pages: 109-116
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Handle: RePEc:wej:wldecn:378

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This page was last updated on 2009-12-12.


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