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Can political factors explain the behaviour of stock prices beyond the standard present value models?

Wisniewski, Tomasz Piotr (2009). Can political factors explain the behaviour of stock prices beyond the standard present value models? Applied Financial Economics, 19(23) pp. 1873–1884.

DOI (Digital Object Identifier) Link: https://doi.org/10.1080/09603100903166189
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Abstract

This article documents that political factors can be linked to that part of stock prices which cannot be explained by the standard present value models. The nonfundamental component of stock market index appears to be significantly influenced by the political orientation of the president and his approval rating, election cycle and military conflicts. The findings presented here indicate that there is much more to the price formation process than the present value of future dividends.

Item Type: Journal Item
Copyright Holders: 2009 Taylor & Francis
ISSN: 1466-4305
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: 55390
Depositing User: Tomasz Wisniewski
Date Deposited: 12 Jun 2018 09:52
Last Modified: 10 Dec 2018 22:35
URI: http://oro.open.ac.uk/id/eprint/55390
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