Title

General Election, Political Change and Market Efficiency: Long- and Short-term Perspective in Developed Stock Market

Authors

• Yi-Hsien Wang, Department of Finance, Yuanpei University, No. 306, Yuanpei St. Hsin Chu 30015, Taiwan
• Mei-Yu Lee, Department of Finance, Yuanpei University, No. 306, Yuanpei St. Hsin Chu 30015, Taiwan
• Che-Yang Lin, Department of Finance, Yuanpei University, No. 306, Yuanpei St. Hsin Chu 30015, Taiwan

Journal name

Journal of Money, Investment and Banking (EconLit)

Abstract

This paper utilized event study and panel data to examine the effects of general election and political change in developed stock market. The analytical results demonstrate that there is inverse information during the campaign. Furthermore, the results provide evidences that political change was originally intended as an incumbent party impetus to create opportunities for progress. This has caused great political party distress, creating political change with an inverse stock market relationship in developed countries.

Keywords

• Event Study
• Panel Data
• GARCH
• General Election
• Market Efficiency

Citation

Yi-Hsien Wang, Mei-Yu Lee and Che-Yang Lin, 2008, General Election, Political Change and Market Efficiency: Long- and Short-term Perspective in Developed Stock Market, Journal of Money, Investment and Banking, No. 3, 58-67.

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Recommended citation: Yi-Hsien Wang, Mei-Yu Lee and Che-Yang Lin, 2008, General Election, Political Change and Market Efficiency: Long- and Short-term Perspective in Developed Stock Market," Journal of Money, Investment and Banking, No. 3, 58-67. https://docs.google.com/viewer?a=v&pid=sites&srcid=ZGVmYXVsdGRvbWFpbnxteWxlZTkwMHxneDozMzAyNmZhMjNhYzI0NGI3