How do political and economic news affect emerging markets? Evidence from Argentina and Turkey

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Onder Z., Simga-Mugan C.

EMERGING MARKETS FINANCE AND TRADE, cilt.42, sa.4, ss.50-77, 2006 (SSCI) identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 42 Sayı: 4
  • Basım Tarihi: 2006
  • Doi Numarası: 10.2753/ree1540-496x420403
  • Dergi Adı: EMERGING MARKETS FINANCE AND TRADE
  • Derginin Tarandığı İndeksler: Social Sciences Citation Index (SSCI), Scopus
  • Sayfa Sayıları: ss.50-77
  • Anahtar Kelimeler: emerging markets, political and economic news, volatility and volume, STOCK-PRICES, PUBLIC INFORMATION, DIVERSIFICATION, LINKAGES, BENEFITS
  • Orta Doğu Teknik Üniversitesi Adresli: Hayır

Özet

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.