Is all politics local? Regional political risk in Russia and the panel of stock returns

2019 ◽  
Vol 21 ◽  
pp. 70-82 ◽  
Author(s):  
Savva Shanaev ◽  
Binam Ghimire
Keyword(s):  
Stock Returns ◽  
Political Risk

Time and frequency spillovers between political risk and the stock returns of China's rare earths

2022 ◽  
Vol 75 ◽  
pp. 102464
Author(s):  
Mei-Jing Zhou ◽  
Jian-Bai Huang ◽  
Jin-Yu Chen
Keyword(s):  
Stock Returns ◽  
Rare Earths ◽  
Political Risk

EXPERT POLITICAL RISK OPINIONS AND BANKING SYSTEM RETURNS EXPERT POLITICAL RISK OPINIONS AND BANKING SYSTEM RETURNS

2007 ◽  
Vol 5 (1) ◽  
Author(s):  
John Simpson
Keyword(s):  
Stock Returns ◽  
Human Behavior ◽  
Banking System ◽  
Political Risk ◽  
Market Model ◽  
Risk Scores ◽  
International Banking ◽  
Regulatory Capital ◽  
Banking Systems ◽  
Social And Cultural Factors

Human behavior in banking and financial systems is in part made up of a complex mix of political, social and cultural factors. These factors are reflected in expert opinion based political risk scores. Market inefficiency is largely a result of anomalies in human behavior causing information asymmetries. A basic systemic market model is re-specified into a model for international banking systems, which controls for pure political risk. Samples of developed and developing banking systems are examined. Political risk factors and world banking returns are exogenous in models of countrybanking system returns. New political information assists in explaining banking system stock returns. The findings should be of interest to investors in banking stocks. Banking regulators may be assisted in decisions on appropriate levels of regulatory capital as a benchmark for banking systems. The model could help to anticipate financial crises.

The impact of political risk on the volatility of stock returns: the case of Canada

2005 ◽  
Vol 36 (6) ◽  
pp. 701-718 ◽  
Author(s):  
Marie-Claude Beaulieu ◽  
Jean-Claude Cosset ◽  
Naceur Essaddam
Keyword(s):  
Stock Returns ◽  
Political Risk ◽  
The Impact

Regulatory changes and the volatility of stock returns – the German solar energy sector

2014 ◽  
Vol 8 (2) ◽  
pp. 160-177 ◽  
Author(s):  
Dirk Schiereck ◽  
Julian Trillig
Keyword(s):  
Solar Energy ◽  
Stock Returns ◽  
Risk Premium ◽  
Political Risk ◽  
Energy Sector ◽  
Political Support ◽  
High Tech ◽  
Content Type ◽  
Political News ◽  
The Impact

Purpose – The purpose of this paper is to determine the impact of political risk on the German solar energy industry. The authors analyze the period from 2006 to mid-2011, when the technological development of this sector was remarkable while the whole industry is depending on political support and subsidies. Design/methodology/approach – The authors apply an EGARCH model assessing potential changes in conditional volatility response of solar industry stock returns following political risk events. Findings – The results document major changes in political support of the solar industry drive capital market risk. Whereby favorable political news significantly decrease volatility response and unfavorable political news do not affect volatility response. Moreover, the authors find that the volatility response varies with the exposure to political risk. Companies with higher exposure to political risk show more significant volatility response. Practical implications – Political risk affects the cost of capital of companies in this sector. Thus, managers are able to time equity measures in a way that they can determine periods when the investor's required return is low due to a reduced risk premium. The authors suggest risk reducing public policy facilitates investments in those industries and thus fosters the development and diffusion of immature technologies. Originality/value – The paper helps policy makers, managers, and investors to assess the impact of political risk on the overall risk of the German solar energy sector and in a broader view of immature or high-tech industries that depend crucially on governmental support.

scholarly journals Political Risk and Stock Returns in Indonesia

2017 ◽  
Vol 2 (3) ◽  
pp. 08-13
Author(s):  
Paulina Yuritha Amtiran ◽  
Rina Indiastuti
Keyword(s):  
Stock Returns ◽  
Stock Price ◽  
Cost Of Capital ◽  
Stock Exchange ◽  
Political Risk ◽  
Secondary Data ◽  
Jel Classification ◽  
Least Square ◽  
Financial Condition ◽  
Political Risks

Objective - The research aims to find the relationship between the political risk with stock returns. Methodology/Technique - Using the purposive sampling, secondary data on 30 companies listed in Indonesia Stock Exchange (BEI) of the year 2007-2015. Analysis technique used is weighted least square regression Findings - The results of study Political risks significantly positively associated with stock returns. These results imply a change from the shock of political risk will affect cost of capital of the company increased, causing the company's stock price will go up which in the end impact on improving the company's stock returns obtained. Novelty - The study implies Shock due to the change of political risk has a direct impact on the company's financial condition primarily of the cost of capital companies because it involves policy and investment decisions are made in Indonesia. Type of Paper - Empirical Keywords: BEI; Market Capitalization; Market Returns; Political Risk; Stock Returns. JEL Classification: G30, G32.

Freedom Indices and Capital Asset Pricing Model: Some Malaysian Evidence

2020 ◽  
Vol 1 (1) ◽  
pp. 1-21
Author(s):  
Ying Tay Lee ◽  
Devinaga Rasiah ◽  
Ming Ming Lai
Keyword(s):  
Human Rights ◽  
Asset Pricing ◽  
Stock Returns ◽  
Firm Size ◽  
Explanatory Power ◽  
Least Square ◽  
Press Freedom ◽  
Capital Asset Pricing ◽  
Capital Asset ◽  
Cross Sectional

Human rights and fundamental freedoms such as economic, political, and press freedoms vary widely from country to country. It creates opportunity and risk in investment decisions. Thus, this study is carried out to examine if the explanatory power of the model for capital asset pricing could be improved when these human rights movement indices are included in the model. The sample for this study comprises of 495 stocks listed in Bursa Malaysia, covering the sampling period from 2003 to 2013. The model applied in this study employed the pooled ordinary least square regression estimation. In addition, the robustness of the model is tested by using firm size as a controlled variable. The findings show that market beta as well as the economic and press freedom indices could explain the cross-sectional stock returns of the Malaysian stock market. By controlling the firm size, it adds marginally to the explanation of the extended CAP model which incorporated economic, political, and press freedom indices.

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