Political risk in emerging and developed markets

  • Diamonte R
  • Liew J
  • Stevens R
N/ACitations
Citations of this article
3Readers
Mendeley users who have this article in their library.
Get full text

Abstract

Using analyst estimates of political risk, we show that political risk represents a more important determinant of stock returns in emerging than developed markets. Average returns in emerging markets experiencing decreased political risk exceed those of emerging markets experiencing increased political risk by approximately 11 % per quarter. In contrast, the difference is only 2.5% per quarter for developed markets. Further, the difference between the impact of political risk in emerging and developed markets is statistically significant. We also document a global convergence in political risk. Over the last 10 years, political risk has decreased in emerging markets and increased in developed markets. If this trend continues, the differential impact of political risk in emerging vs. developed markets may narrow.

Cite

CITATION STYLE

APA

Diamonte, R. L., Liew, J. M., & Stevens, R. L. (1998). Political risk in emerging and developed markets (pp. 277–289). https://doi.org/10.1007/978-1-4615-6197-2_16

Register to see more suggestions

Mendeley helps you to discover research relevant for your work.

Already have an account?

Save time finding and organizing research with Mendeley

Sign up for free