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, vol.42, no.4, pp.50-77, 2006 (SSCI) identifier identifier

  • Publication Type: Article / Article
  • Volume: 42 Issue: 4
  • Publication Date: 2006
  • Doi Number: 10.2753/ree1540-496x420403
  • Journal Name: EMERGING MARKETS FINANCE AND TRADE
  • Journal Indexes: Social Sciences Citation Index (SSCI), Scopus
  • Page Numbers: pp.50-77
  • Keywords: emerging markets, political and economic news, volatility and volume, STOCK-PRICES, PUBLIC INFORMATION, DIVERSIFICATION, LINKAGES, BENEFITS
  • Middle East Technical University Affiliated: No

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.