Partisan politics and stock market performance: the effect of expected government partisanship on stock returns in the 2002 German federal election

Roland Füss, Michael M. Bechtel

Research output: Contribution to journalArticle

Abstract

Rational partisan theory suggests that firms perform better under right- than left-leaning governments. In the pre-election time, investors should anticipate these effects of government partisanship. This is the first study to investigate such anticipated partisan effects in Germany. Applying conditional volatility models we analyze the impact of expected government partisanship on stock market performance in the 2002 German federal election.
Original languageEnglish
Pages (from-to)131-150
Number of pages20
JournalPublic Choice
Volume135
Issue number3-4
DOIs
Publication statusPublished - Jun 2008

Keywords

  • federal election
  • stock market
  • government partisanship
  • Germany

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