The effect of global political risk on stock returns: A cross-sctional and a time-series analysis
Given the rise of political uncertainty, it is important to develop an understanding of their effect on financial markets. We use a political risk measure to calculate their effect on stock markets based on a political risk measure. The political risk proxy is related to cross-country returns and tw...
- Autores:
-
Vargas Lovatón, Karen Luz
Gonzalez, Angelica
Silva, Jesus
- Tipo de recurso:
- Article of journal
- Fecha de publicación:
- 2020
- Institución:
- Corporación Universidad de la Costa
- Repositorio:
- REDICUC - Repositorio CUC
- Idioma:
- eng
- OAI Identifier:
- oai:repositorio.cuc.edu.co:11323/7757
- Acceso en línea:
- https://hdl.handle.net/11323/7757
https://doi.org/10.1007/978-3-030-30465-2_60
https://repositorio.cuc.edu.co/
- Palabra clave:
- Policy uncertainty
Asset pricing
Political risk
Stock markets
- Rights
- openAccess
- License
- Attribution-NonCommercial-NoDerivatives 4.0 International
| Summary: | Given the rise of political uncertainty, it is important to develop an understanding of their effect on financial markets. We use a political risk measure to calculate their effect on stock markets based on a political risk measure. The political risk proxy is related to cross-country returns and two portfolios: one with upside and other with downside political risk. Time-series and cross-sectional analysis are conducted to measure the effectiveness of this measure on global markets. The results evidence that an increase in global political risk is negatively correlated with an upside portfolio containing global stock returns. |
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