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Impact of Political Regime Shift on Stock Returns of Oligarch Firms

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  • Zadorozhna Olha
  • Zaderey Natalia

Abstract

We study the evolution of the stock prices of 17 politically connected firms around the time of the Orange revolution and two other crucial political events (2010 Presidential elections and the arrest of Yuliya Tymoshenko) in Ukraine. Using an event-study approach we find that political connections do matter in Ukraine. Companies that are strongly linked with the two major Ukrainian parties (Orange coalition and Party of Regions) are sensitive to shifts of the political regime.

Suggested Citation

  • Zadorozhna Olha & Zaderey Natalia, 2013. "Impact of Political Regime Shift on Stock Returns of Oligarch Firms," EERC Working Paper Series 13/06e, EERC Research Network, Russia and CIS.
    • Handle: RePEc:eer:wpalle:13/06e
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    References listed on IDEAS

    as
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    7. Michael J. Cooper & Huseyin Gulen & Alexei V. Ovtchinnikov, 2010. "Corporate Political Contributions and Stock Returns," Journal of Finance, American Finance Association, vol. 65(2), pages 687-724, April.
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    More about this item

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State
    • P34 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Finance
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption

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