The stock and CDS market consequences of political uncertainty: the Arab Spring

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buir.contributor.authorTanyeri, Başak
buir.contributor.orcidTanyeri, Başak|0000-0002-9354-2639
dc.citation.epage1837en_US
dc.citation.issueNumber7
dc.citation.spage1821en_US
dc.citation.volumeNumber58
dc.contributor.authorTanyeri, Başak
dc.contributor.authorSavaser, T.
dc.contributor.authorUsul, N.
dc.date.accessioned2022-03-03T11:50:40Z
dc.date.available2022-03-03T11:50:40Z
dc.date.issued2021-08-02
dc.departmentDepartment of Managementen_US
dc.description.abstractWe investigate how political unrest affects asset prices in the context of the Arab Spring. Abnormal returns in the major stock-market indices of Arab Spring countries average −1.1% on key days of Arab Spring and abnormal changes in credit default spreads average 1.4%. There is significant reaction to region wide as well as local protests indicating a spillover with protests in neighboring countries affecting investors’ perception of local political instability and the pricing of assets. Once protests start locally, investors start paying more attention to what is happening at home than in the region. The significant stock market reaction to region-wide protests in Arab Spring countries indicates a spill-over where investors price an increase in the probability of political turmoil in one country when there are protests in neighboring countries. The decline in stock market indices coupled with the increase in credit default spreads indicates that investors anticipate and ex-ante price how current political uncertainty will affect firm value.en_US
dc.description.provenanceSubmitted by Dilan Ayverdi (dilan.ayverdi@bilkent.edu.tr) on 2022-03-03T11:50:40Z No. of bitstreams: 1 The_stock_and_CDS_market_consequences_of_political_uncertainty_the_Arab_Spring.pdf: 5539261 bytes, checksum: efb94b772e3aa793b17e779e222d352b (MD5)en
dc.description.provenanceMade available in DSpace on 2022-03-03T11:50:40Z (GMT). No. of bitstreams: 1 The_stock_and_CDS_market_consequences_of_political_uncertainty_the_Arab_Spring.pdf: 5539261 bytes, checksum: efb94b772e3aa793b17e779e222d352b (MD5) Previous issue date: 2021-08-02en
dc.identifier.doi10.1080/1540496X.2021.1937116en_US
dc.identifier.eissn1558-0938
dc.identifier.issn1540-496X
dc.identifier.urihttp://hdl.handle.net/11693/77675
dc.language.isoEnglishen_US
dc.publisherEmerging Markets Finance & Tradeen_US
dc.relation.isversionofhttps://doi.org/10.1080/1540496X.2021.1937116en_US
dc.source.titleEmerging Markets Finance & Tradeen_US
dc.subjectPolitical uncertaintyen_US
dc.subjectArab Springen_US
dc.subjectRegional spilloversen_US
dc.subjectMiddle East and North Africaen_US
dc.titleThe stock and CDS market consequences of political uncertainty: the Arab Springen_US
dc.typeArticleen_US

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