Global political ties and the global financial cycle / Gene Ambrocio, Iftekhar Hasan, Xiang Li ; editor: Halle Institute for Economic Research (IWH) - Member of the Leibniz Association
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Discovery
1878209191
URN
urn:nbn:de:gbv:3:2-1029741
DOI
ISBN
ISSN
Autorin / Autor
Beiträger
Körperschaft
Erschienen
Halle (Saale), Germany : Halle Institute for Economic Research (IWH) - Member of the Leibniz Association, December 2023
Umfang
1 Online-Ressource (III, 52 Seiten, Seite A1-A18, 2,76 MB) : Diagramme
Ausgabevermerk
Sprache
eng
Anmerkungen
Literaturverzeichnis: Seite 47-52
Inhaltliche Zusammenfassung
We study the implications of forging stronger political ties with the US on the sensitivities of stock returns around the world to a global common factor - the global financial cycle. Using voting patterns at the United Nations as a measure of political ties with the US along with various measures of the global financial cycle, we document evidence indicating that stronger political ties with the US amplify the sensitivities of stock returns in developing countries to the global financial cycle. We explore several channels and find that a deepening of financial linkages along with a reduction in information asymmetries and an amplification of sentiment are potentially important factors behind this result.
Schriftenreihe
IWH-Diskussionspapiere ; 2023, no. 23 (December 2023) ppn:837399270