Gustavo Pereira, Jéfferson A. Colombo, O. Figueiredo
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引用次数: 2
Abstract
Abstract The 2018 Brazilian presidential elections coupled unprecedented political instability with a close race between two candidates with antagonistic economic agendas. Using this unparalleled scenario, this paper analyzes the role of political events in shaping the returns on financial assets. The regressions using the Propensity Score Matching technique suggest that companies linked to the government had positive cumulative abnormal returns around relevant events compared with otherwise identical firms. These results reinforce the role of political risk on financial markets in emerging economies and allow economic agents to outline strategies to predict stock return behavior during periods of political turmoil.
期刊介绍：
Latin American Business Review is a quarterly, refereed journal which facilitates the exchange of information and new ideas between academics, business practitioners, public policymakers, and those in the international development community. Special features of the journal will keep you current on various teaching, research, and information sources. These activities all focus on the business and economic environment of the diverse and dynamic countries of the Americas.
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