How do political and economic news affect emerging markets? Evidence from Argentina and Turkey

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2006-07-01

Author

Onder, Zeynep
Simga-Mugan, Can

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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.

Subject Keywords

General Economics, Econometrics and Finance, Finance

URI

https://hdl.handle.net/11511/65996

Journal

EMERGING MARKETS FINANCE AND TRADE

DOI

https://doi.org/10.2753/ree1540-496x420403

Collections

Department of Business Administration, Article

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Citation Formats

Z. Onder and C. Simga-Mugan, “How do political and economic news affect emerging markets? Evidence from Argentina and Turkey,” EMERGING MARKETS FINANCE AND TRADE, pp. 50–77, 2006, Accessed: 00, 2020. [Online]. Available: https://hdl.handle.net/11511/65996.