Cross-country analysis of the effects of political uncertainty on stock price informativeness

Simple item page
dc.contributor.authorFulgence, Samuel
dc.contributor.authorKwabi, Frank
dc.contributor.authorBoateng, Agyenim
dc.contributor.authorHu, Wansu
dc.contributor.authorPaudyal, Krishna
dc.date.acceptance2023-08-23
dc.date.accessioned2024-02-14T17:13:21Z
dc.date.available2024-02-14T17:13:21Z
dc.date.issued2023-08-25
dc.descriptionopen access article
dc.description.abstractWe examine the effects of political uncertainty on the informativeness of stock prices. Using panel data from 49 countries and 441,882 firm-year observations from 2000 to 2020, our results evince several interesting aspects. First, we find that, whereas political uncertainty reduces stock price informativeness in the year prior to elections and during the elections, stock prices tend to be more informative in non-election years. Second, we find that the sensitivity of stock price informativeness to political uncertainty is reduced by the strength of institutional quality. Third, the effects of political uncertainty appear to be heterogeneous across less/unregulated and regulated industries. Lastly, our channel analysis indicates that during the year of elections, firms tend to disclosure less information thereby exerting a negative impact on stock price informativeness. Our results are robust to the system generalized method of moments (SGMM), difference-in-difference, and alternative specifications.
dc.funderNo external funder
dc.identifier.citationFulgence, S. et al. (2023) Cross-country analysis of the effects of political uncertainty on stock price informativeness. Journal of International Financial Markets, Institutions and Money, 88, 101829
dc.identifier.doihttps://doi.org/10.1016/j.intfin.2023.101829
dc.identifier.issn1042-4431
dc.identifier.urihttps://hdl.handle.net/2086/23551
dc.language.isoen
dc.peerreviewedYes
dc.publisherElsevier
dc.relation.ispartofJournal of International Financial Markets, Institutions and Money
dc.titleCross-country analysis of the effects of political uncertainty on stock price informativeness
dc.typeArticle
oaire.citation.volume88

Files

License bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
license.txt
Size:
4.2 KB
Format:
Item-specific license agreed upon to submission
Description:
Download

Collections

School of Accounting, Finance and Economics