Interest Group Activity and Long-Run Stock Market Performance
AbstractThis paper provides evidence that interest group activity is negatively related to aggregate stock market performance. In particular, the ¯ndings imply that a one percent increase in the number of interest groups in a country is associated with a reduction in average annual stock market returns of roughly 2-5%, and a reduction in the volatility of annual stock returns of roughly 6-14%. In addition, the ¯ndings indicate that many of the same fundamentals that drive economic growth also explain stock market performance.
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Bibliographic InfoPaper provided by Saint Louis University, Department of Economics in its series Working Papers with number 2007-02.
Length: 34 pages
Date of creation: Apr 2007
Date of revision:
Contact details of provider:
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Phone: 314 977-3848
Fax: 314 977-1478
Web page: http://www.slu.edu/x14335.xml
More information through EDIRC
special interest groups; institutional sclerosis; stock returns; volatility;
Other versions of this item:
- Dennis Coates & Bonnie Wilson, 2007. "Interest group activity and long-run stock market performance," Public Choice, Springer, vol. 133(3), pages 343-358, December.
- D7 - Microeconomics - - Analysis of Collective Decision-Making
- G1 - Financial Economics - - General Financial Markets
- G2 - Financial Economics - - Financial Institutions and Services
- L5 - Industrial Organization - - Regulation and Industrial Policy
- O16 - Economic Development, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-09-02 (All new papers)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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