Wisniewski, Tomasz Piotr; Lightfoot, Geoffrey and Lilley, Simon
(2012).
| DOI (Digital Object Identifier) Link: | https://doi.org/10.1007/s12197-009-9116-0 |
|---|---|
| Google Scholar: | Look up in Google Scholar |
Abstract
Stock markets and politics are enduring staples of dinner party conversations but surprisingly little is known about the interaction between the two. Here we present evidence for a robust relationship between a key financial measure—the aggregate Price–Earnings ratio—and surveyed approval of the incumbent president. We argue, following the finance literature, that the price–earnings ratio is a composite measure of investors’ hopes and fears. The partially prospective nature of this ratio enables us to shed new light upon the controversy surrounding how the electorate attends to economic circumstances in judging its presidents.
| Item Type: | Journal Item |
|---|---|
| Copyright Holders: | 2009 Springer Science+Business Media, LLC |
| ISSN: | 1938-9744 |
| Keywords: | Political Economy; Price–Earnings Ratio; Presidential Approval |
| Academic Unit/School: | Faculty of Business and Law (FBL) > Business > Department for Accounting and Finance Faculty of Business and Law (FBL) > Business Faculty of Business and Law (FBL) |
| Item ID: | 55389 |
| Depositing User: | Tomasz Wisniewski |
| Date Deposited: | 11 Jun 2018 15:54 |
| Last Modified: | 07 Dec 2018 21:48 |
| URI: | http://oro.open.ac.uk/id/eprint/55389 |
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