Price jitters: Do markets punish political stocks?
AbstractThe paper examines the impact of firms exhibiting political connection on their stock market performance. The results appear to suggest that the performance of ‘political’ stocks has been significantly weak. This is apparent in simple univariate tests that compare the political stocks across various industry categories or even comparisons of political versus apolitical stocks. The regression analysis indicates that the returns on political stocks are on average, over 20% lower as compared to stocks without any political association.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 33170.
Date of creation: Jun 2011
Date of revision:
political connection; buy-and-hold abnormal returns; India;
Find related papers by JEL classification:
- G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
- P52 - Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-09-16 (All new papers)
- NEP-CFN-2011-09-16 (Corporate Finance)
- NEP-POL-2011-09-16 (Positive Political Economics)
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