Effect of Election Preferences on the Stock Prices
|Author:||Mgr. Ganna Efros|
|Year:||2019 - winter|
|Leaders:|| prof. Ing. Evžen Kočenda M.A., Ph.D., DSc.
|Work type:|| Finance, Financial Markets and Banking
|Awards and prizes:|
|Abstract:||There exist a lot of empirical researches, that examine what factors effect the stock
market volatility. The concept of investor sentiment is quite popular and is frequently
discussed. However, there does not exist any research which would study the relation
between the change in election preferences during the presidential campaigns and stock
market volatility. The present thesis explores the effect of political sentiment on United
States and French models. Here, we construct the model, which examines the effect of
change in election preferences on the volatility. The results suggest, that change in
election preferences does not affect the stock market volatility during the presidential
campaign. Thus, its inclusion to the model does not increase the prediction power.