How do political and economic news affect emerging markets? evidence from Argentina and Turkey
Author
Önder, Z.
Şimga-Mugan, C.
Date
2006Source Title
Emerging Markets Finance & Trade
Print ISSN
1540-496X
Electronic ISSN
1558-0938
Publisher
Routledge
Volume
42
Issue
4
Pages
50 - 77
Language
English
Type
ArticleItem Usage Stats
111
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views
160
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downloads
Abstract
High returns in emerging markets over the last decade have attracted international investors. This study investigates if and how economic or political news affects stock market activity in two emerging markets: Argentina and Turkey. Our analysis shows that political and economic news influences both the volatility of returns and trading volume in these markets to varying degrees. Results suggest that both economic and political factors, as well as specific market characteristics, should be taken into consideration by international investors when making investment decisions in emerging markets.