Political connection, government policy, and investor trading: Evidence from an emerging market

NCUIR > School of Management at National Central University > Department of Finance > journal & Dissertation > Item 987654321/104942

Please use this identifier to cite or link to this item: https://ir.lib.ncu.edu.tw/handle/987654321/104942

Title:	Political connection, government policy, and investor trading: Evidence from an emerging market
Authors:	何柏欣;Lin, Chih-Yung;Ho, Po-Hsin;Shen, Chung-Hua;Wang, Yu-Chun
Contributors:	管理學院財務金融學系
Keywords:	Abnormal returns;Election results;Government policy;Investments;Investor trading;Political connection;Political parties;Presidential election;Presidential elections;Securities trading;Stock returns;Stockholders;Studies
Date:	2016-03-01
Issue Date:	2026-04-23 12:02:04 (UTC+8)
Publisher:	Elsevier Inc.;Greenwich: Elsevier Inc
Abstract:	摘要： This study investigates whether political connection (PC), government policy (GP), or both affect stock returns before and after the Taiwanese 2008 presidential election. We also examine whether the two effects influence the five types of investor trading during the election. Past studies have separately focused on either the PC or the GP effect, whereas this study considers both effects. Specifically, we consider five types of investors, namely, foreign investors, security investment trust companies (INVTRUSTs), security dealers, board of directors and supervisors, and individual investors. We find that firms connecting only with the winning party exhibit positive abnormal returns, and only INVTRUSTs increase the shareholdings of these firms (PC effect). Our results do not support the GP effect alone. Instead, we identify that firms with joint PC and GP effects have the abnormal returns during election periods. •We discuss the stock returns during the Taiwanese 2008 presidential election.•The effects of political connection (PC), government policy, or both are examined.•Firms connecting with the winning party exhibit positive abnormal returns.•The trading behaviors of five types of investors are also discussed.•Only security investment trust companies increase the shareholdings of PC firms. 出版者： Greenwich: Elsevier Inc 出版日期： 2016-03 出處： International review of economics & finance, 2016-03, Vol.42, p.153-166 資源來源： Elsevier ScienceDirect Journals: Bodleian Libraries collection 版權： 2015 Elsevier Inc. 版權： Copyright Elsevier Science Ltd. Mar 2016 識別號： ISSN: 1059-0560 識別號： EISSN: 1873-8036 識別號： DOI: 10.1016/j.iref.2015.09.008
Appears in Collections:	[Department of Finance] journal & Dissertation

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