The “Donald” and the market: Is there a cointegration?

Angelini, Eliana; Foglia, Matteo; Ortolano, Alessandra; Leone, Maria

doi:10.1016/j.ribaf.2017.07.129

Cited by 2 publications

(2 citation statements)

References 22 publications

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“…The results imply that electioneering activities impacted negatively on GSE returns both in the short-run and long-run. This confirms that electioneering activities affect GSE market performance, and it tallies with the studies by Angelini et al (2018), Dӧpke and Pierdzioch (2006) and Günay (2016). The GSE's poor performance can affect the political parties in power negatively and create an arbitrage opportunity for speculators.…”

Section: Discussionsupporting

confidence: 85%

“…The autoregressive distributed lag (ARDL) bound test approach to cointegration and Granger causality test were used to examine the daily data. The result shows that electioneering activity negatively affects the GSE returns both in the short-run and long-run, and the results correlate with work of Angelini et al (2018), Dӧpke and Pierdzioch (2006) and Günay (2016). The abysmal performance of the GSE market may send the political party in power into opposition and does create arbitrage opportunities for speculators (disproving the arbitrage pricing model).…”

Section: Introductionmentioning

confidence: 72%

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Electioneering activities and their impact on the Ghana Stock Exchange

Tetteh

Arthur

2020

Journal of Economic and Financial Sciences

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Orientation: Literature is scanty on the euphoria around Ghana's electioneering activities and their impact on economic activities. Research purpose:This article studies electioneering activities and their impact on the Ghana Stock Exchange (GSE) returns.Motivation for the study: Literature have established that political risk is statistically significant in emerging stock markets and from 5 January to 7 December 2016, the GSE lost 23.47% of its trading values. Hence, this article finds it imperative to examine whether electioneering activities indeed have an impact on GSE.Research approach/design and method: Using daily data span from 5 January 2016 to 7 December, 2016. The autoregressive distributed lag (ARDL) bound test approach to cointegration and Granger causality test was used to examine the data. Main findings:The result suggests that electioneering activity impact negatively on the GSE returns both in the short-run and long-run, but its cause is not clear. It impacts creates arbitrage opportunities for investors and may punish the political party in power.Practical/managerial implications: Political parties in power should recognize that electioneering activities creates a dilemma between regaining power or managing the economy.Contribution/value-add: Ghana's electioneering activities disproves some investment theories, that is, investors assume risk may not reflect their expected return since the stock market efficiency is nullified by arbitrage opportunity.

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Section: Discussionsupporting

confidence: 85%

Section: Introductionmentioning

confidence: 72%