Trump\'s Election Uncertainty and Global Stock Returns

• Main Authors: Chris Vaike, 克利斯
• Other Authors: Chien-Ling Lo
• Format: Others
• Language: en_US
• Published: 2019
• Online Access: http://ndltd.ncl.edu.tw/handle/f4v4vt

碩士 === 元智大學 === 財務金融暨會計碩士班(財務金融學程) === 107 === This research uses a novel measure of firm-level political sensitivity to investigate the effect of political uncertainty on stock returns in 52 countries around the 2016 U.S. presidential election. Our findings show that firms that are more politically sensitive to the U.S. experienced negative stock returns during the election. We use various measures of firm and country characteristics to examine the spillover of Trump’s uncertainty across firms and countries. Our results showed that Trump’s uncertainty effect is stronger for firms with risky business models and more firm-specific information. Additionally, we observe a stronger effect in countries that share cultural similarities with the U.S, higher levels of economic and financial market development, better investor protection, and more efficient capital markets.