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The impact of party alternative on the stock market: the case of Japan

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  • Chin-Tsai Lin
  • Yi-Hsien Wang

Abstract

This paper tries to clarify whether change in political regime has an effect on the behaviour of the stock market in Japan. The empirical study finds that the transition of ruling party effect is not a crucial variable to the Nikkei 225. The alienation felt by the Japanese about the political environment, resulting in a succession of prime ministers, does not influence the Nikkei 225 stock market behaviour. Therefore, former prime ministers who have resigned have become scapegoats for the poor performance of financial and economic policies.

Suggested Citation

  • Chin-Tsai Lin & Yi-Hsien Wang, 2007. "The impact of party alternative on the stock market: the case of Japan," Applied Economics, Taylor & Francis Journals, vol. 39(1), pages 79-85.
  • Handle: RePEc:taf:applec:v:39:y:2007:i:1:p:79-85
    DOI: 10.1080/00036840500427882
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    References listed on IDEAS

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