How Political and Geopolitical Risks Affect Stock Markets: Empirical Evidence from Emerging Market Economies
ESKISEHIR OSMANGAZI UNIVERSITESI IIBF DERGISI-ESKISEHIR OSMANGAZI UNIVERSITY JOURNAL OF ECONOMICS AND ADMINISTRATIVE SCIENCES, cilt.16, sa.3, ss.688-704, 2021 (ESCI, TRDizin)
- Yayın Türü: Makale / Tam Makale
- Cilt numarası: 16 Sayı: 3
- Basım Tarihi: 2021
- Doi Numarası: 10.17153/oguiibf.952112
- Dergi Adı: ESKISEHIR OSMANGAZI UNIVERSITESI IIBF DERGISI-ESKISEHIR OSMANGAZI UNIVERSITY JOURNAL OF ECONOMICS AND ADMINISTRATIVE SCIENCES
- Derginin Tarandığı İndeksler: Emerging Sources Citation Index (ESCI), TR DİZİN (ULAKBİM)
- Sayfa Sayıları: ss.688-704
- Anahtar Kelimeler: Stock Markets, Political Risk, Geopolitical Risk, Panel Data Analysis, RETURN, IMPACT
- Anadolu Üniversitesi Adresli: Evet
Özet
This study investigates the effects of political and geopolitical risks on stock markets in emerging market economies. A panel data set containing data between the years 2005-2018 was used in the study. Principal Component Analysis (PCA) method, Parks-Kmenta Estimator, and were used as an econometric method. According to the findings, it has been observed that there is a negative and statistically significant relationship between both political risk and geopolitical risk and stock markets. In this context, the findings of this study indicate that high-risk perceptions towards emerging markets economies limit the investments of both domestic and foreign investors in stock markets.