Political connection and stock returns: Evidence from party alternation in Taiwan

Lee, Jen-Sin; Yen, Pi-Hsia; Lee, Liang-Chien

doi:10.1016/j.iref.2018.08.015

Cited by 8 publications

(3 citation statements)

References 21 publications

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“…Finally, the research model, which is a modified form of the model of Lee et al (2019), andCooper et al (2010), will be as follows:…”

Section: Methodsmentioning

confidence: 99%

“…are measured as the sum of the difference between the actual returns of security and the expected returns based on the Market model in 12 months or (365 days) Lee et al (2019)ElectionA dummy variable that takes the value of 1 if the presidential election is held in a given year and 0 otherwise (as a proxy variable from the presidential period) of firms divided by the book value of the owner's equityLee et al (2019) Beta Market beta based on 356 daily excess returns regression of market index excess returnsLee et al (2019) …”

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confidence: 99%

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The Presidential period in the United States of America and stock returns, evidence from Iran

Dadaneh

Khezre

Haghighat³

2022

Preprint

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The most important event in the world is the presidential election in the United States of America, to which the stock markets of many countries react. This reaction may differ according to the presidential period in which one of the candidates is selected. Accordingly, our research aims to investigate the effect of two presidential periods with two different parties on the stock returns of companies listed on the Tehran Stock Exchange. Hence, using the analysis of 650 firm-year observations for the first period and 1095 firm-year observations for the second period, for two different presidential periods, respectively, the presidency of Barack Obama (Democratic Party) and Donald Trump (Republican Party), we find that the elections and the presidential period of both parties have a negative, significant effect on the annual cumulative stock returns of companies. Results show that investors react to events such as elections, even in emerging markets like Iran.

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“…Finally, the research model, which is a modified form of the model of Lee et al (2019), andCooper et al (2010), will be as follows:…”

Section: Methodsmentioning

confidence: 99%

mentioning

confidence: 99%

The Presidential period in the United States of America and stock returns, evidence from Iran

Dadaneh

Khezre

Haghighat³

2022

Preprint

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“…Reaksi negatif juga terjadi setelah pemilihan presiden Amerika Serikat pada tahun 2012 yang ditunjukkan dengan return saham yang negatif (Jawed et al, 2019). Penelitian Lee, Yen, & Lee (2019) juga menunjukkan adanya reaksi negatif pada saham emiten yang tidak berelasi dengan partai presiden terpilih di Taiwan. Kondisi tersebut dikaitkan dengan pertimbangan investor pada konflik dan kerjasama perusahaan dengan kepala pemerintahan terpilih untuk membuat keputusan yang rasional.…”

Section: Diskusiunclassified

Reaksi Investor Saham Syariah dan Konvensional terhadap Pengumuman Pembentukan Kabinet Indonesia Maju 2019

Nasution¹,

Zusryn²

2020

j.econom.buss.asea

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Ketidakpastian politik sering menjadi peristiwa khusus yang berpengaruh terhadap return portofolio saham. Tujuan dari penelitian ini adalah untuk menguji pengaruh pengumuman pembentukan kabinet Indonesia Maju 2019-2024 terhadap harga saham yang terdaftar pada Indeks Syariah (ISSI) dan Indeks Harga Saham Gabungan (IHSG). Penelitian ini menggunakan metode event study untuk melihat adanya reaksi pasar yang dapat dilihat dari adanya abnormal return pada saham. Indikator yang digunakan adalah nilai average abnormal return (AAR) dan cumulative average abnormal return (CAAR). Hasil pada penelitian ini menunjukkan bahwa terdapat nilai AAR yang negatif dan signifikan pada sehari sebelum (t-1) dan setelah (t+1) pengumuman menteri pada indeks syariah dan pasar. Selain itu, terdapat perbedaan yang signifikan nilai cumulative average abnormal return (CAAR) sebelum dan sesudah pengumuman menteri pada t (-7,7) untuk portofolio ISSI dan t (-10,10) untuk portofolio IHSG. Adanya reaksi negatif invetor mengindikasikan terdapat kebingungan investor saham syariah terhadap menteri yang terpilih pada kabinet Indonesia Maju. Peristiwa ini diharapkan dapat membantu investor atau manajer investasi dalam menentukan strategi investasi pada saat terjadi ketidakpastian politik.

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Political connections, political cycles and stock returns: Evidence from Iran

Faraji

Kashanipour

MohammadRezaei

et al. 2020

Emerging Markets Review

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Political connection and stock returns: Evidence from party alternation in Taiwan

Cited by 8 publications

References 21 publications

The Presidential period in the United States of America and stock returns, evidence from Iran

The Presidential period in the United States of America and stock returns, evidence from Iran

Reaksi Investor Saham Syariah dan Konvensional terhadap Pengumuman Pembentukan Kabinet Indonesia Maju 2019

Political connections, political cycles and stock returns: Evidence from Iran

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