Financial Markets and Politics: The Piñera Effect on the Chilean Capital Market

Bonilla, Claudio A.; Contreras, Harold; Sepúlveda, Jean P.

doi:10.2753/ree1540-496x5001s108

Cited by 5 publications

(2 citation statements)

References 20 publications

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“…For Latin American countries, few investigations have empirically studied political cycles, except for Bonilla et al (2013). The method used herein facilitates such studies through the aforementioned new dimensions.…”

Section: Discussionmentioning

confidence: 99%

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Non-Linear Multivariate Dependence between the Mexican Stock Market Index and the Exchange Rate: Efficiency Hypothesis and Political Cycle in Mexico (1994-2012)

Coronado

Meza

Martínez

2017

REMEF

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This paper uses a multivariate extension of the non-parametric nonlinearity test from Hinich (1991) with the objective of investigating whether there is a nonlinear relation between the index of The Mexican Stock Exchange (IPC) and the peso/dollar exchange rate measured through the Cross-correlation and cross-correlation in the period 1994-2012 for three sub-periods of presidential administration. This method divides the sample into windows and provides information on nonlinear dependency. The main finding is that no significant cross-correlation windows are detected. However, time windows are observed with a significant cross bicorrelation, which suggests a non-linear and bidirectional relationship between the series. This paper concludes that for the three sub-periods of presidential administration both series maintain the same nonlinear and bidirectional relation for any change in the government with significant windows concentrated at the beginning of the presidential period regardless of the ruling party. Finally, It is important to note that the non-linear bidirectional periods were concentrated in the middle of the last Mexican presidential period, indicating that global external and economic financial factors affected this relationship. detectan ventanas de correlación cruzada significativas. No obstante se observan ventanas de tiempo con una bicorrelación cruzada significativa, lo que sugiere una relación no lineal y bidireccional entre las series. Este trabajo concluye que para los tres subperíodos de administración presidencial ambas series mantienen la misma relación no lineal y bidireccional para cualquier cambio en el gobierno con ventanas significativas concentradas al principio del período presidencial sin importar el partido gobernante. Porúltimo es importante destacar que los períodos no lineales bidireccionales se concentraron a mediados delúltimo período presidencial mexicano, lo que indica que los factores financieros externos y económicos globales afectaron esta relación.

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Section: Discussionmentioning

confidence: 99%

“…Evidence for Latin America is scarce. Work by Bonilla et al (2013) considers the importance of the presidential candidate's characteristics for Chile in 2010. In this regard, the Mexican case is interesting due to the change in the ruling party during the period analyzed.…”

Section: Introductionmentioning

confidence: 99%

Non-Linear Multivariate Dependence between the Mexican Stock Market Index and the Exchange Rate: Efficiency Hypothesis and Political Cycle in Mexico (1994-2012)

Coronado

Meza

Martínez

2017

REMEF

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Investor response to public news, sentiment and institutional trading in emerging markets: A review

Brzeszczyński

Gajdka

Kutan

2015

International Review of Economics & Finance

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This paper reviews the literature on investor reaction and sentiment with respect to public information arrival in emerging markets and discusses the implications of the findings for the validity of theoretical models emphasizing public information arrival as the main mover of asset prices. We cover three types of public information news: monetary policy announcements, the International Monetary Fund (IMF) related news and other public and political news. In addition, we review the literature on sentiment and institutional trading in emerging markets. We summarize general findings and suggest some directions for further research.

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Armed conflict and financial and economic risk: evidence from Colombia

Kutan

2016

Risk Manag

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Financial Markets and Politics: The Piñera Effect on the Chilean Capital Market

Cited by 5 publications

References 20 publications

Non-Linear Multivariate Dependence between the Mexican Stock Market Index and the Exchange Rate: Efficiency Hypothesis and Political Cycle in Mexico (1994-2012)

Non-Linear Multivariate Dependence between the Mexican Stock Market Index and the Exchange Rate: Efficiency Hypothesis and Political Cycle in Mexico (1994-2012)

Investor response to public news, sentiment and institutional trading in emerging markets: A review

Armed conflict and financial and economic risk: evidence from Colombia

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