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 language | English |
|---|---|
| Pages (from-to) | 131-150 |
| Number of pages | 20 |
| Journal | Public Choice |
| Volume | 135 |
| Issue number | 3-4 |
| DOIs | |
| Publication status | Published - Jun 2008 |
Keywords
- federal election
- stock market
- government partisanship
- Germany