Original scientific paper
https://doi.org/10.1080/1331677X.2017.1305802
The effect of presidential election in the USA on stock return flow – a study of a political event
Saša Obradović
orcid.org/0000-0001-9918-7271
Nenad Tomić
orcid.org/0000-0003-1565-3197
Abstract
The subject of this paper is to determine the statistical significance of
abnormal return that appeared on the New York Stock Exchange after
the presidential election in the USA in November 2012. The analysis
is focused on securities of the financial institutions listed on the New
York Stock Exchange, whereby 85 companies have been included.
For the purposes of the analysis a standard methodology of event
study has been used. In general, parametric tests show a statistically
significant negative impact of the event on stock return, whereby with
the nonparametric tests there is no consistent estimation. This paper
provides an interpretation of the results.
Keywords
Event study; abnormal return; market return; parametric tests; nonparametric tests
Hrčak ID:
180806
URI
Publication date:
1.12.2017.
Visits: 1.882 *