Analysis of Political News in the Greek Stock Market

This research paper examined the relationship between political news and stock market returns and volatility in the Greek stock market using the EGARCH in mean framework. The APARCH model is also utilised in order to capture the persistence effect of news. In order to carry out this investigation da...

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Main Author: Takkides, Themistoklis
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2013
Online Access:https://eprints.nottingham.ac.uk/26651/
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author Takkides, Themistoklis
author_facet Takkides, Themistoklis
author_sort Takkides, Themistoklis
building Nottingham Research Data Repository
collection Online Access
description This research paper examined the relationship between political news and stock market returns and volatility in the Greek stock market using the EGARCH in mean framework. The APARCH model is also utilised in order to capture the persistence effect of news. In order to carry out this investigation daily data of the Athens Stock Exchange General Price Index (ASEGPI) were obtained using DataStream. Results indicate that returns are unaffected by the release of political news, whilst the conditional variance is affected only from the release of negative news. The EGARCH in mean also reveals the existence of leverage effect, which means that positive news generate higher volatility for ASEGPI rather than negative. The persistence effect, through the APARCH model, is also evidenced in ASEGPI that is the long memory of the stock market. Finally, risk–return trade-off is absent in this market therefore, investors are not rewarded for their exposure to risk.
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spelling nottingham-266512017-10-19T13:31:31Z https://eprints.nottingham.ac.uk/26651/ Analysis of Political News in the Greek Stock Market Takkides, Themistoklis This research paper examined the relationship between political news and stock market returns and volatility in the Greek stock market using the EGARCH in mean framework. The APARCH model is also utilised in order to capture the persistence effect of news. In order to carry out this investigation daily data of the Athens Stock Exchange General Price Index (ASEGPI) were obtained using DataStream. Results indicate that returns are unaffected by the release of political news, whilst the conditional variance is affected only from the release of negative news. The EGARCH in mean also reveals the existence of leverage effect, which means that positive news generate higher volatility for ASEGPI rather than negative. The persistence effect, through the APARCH model, is also evidenced in ASEGPI that is the long memory of the stock market. Finally, risk–return trade-off is absent in this market therefore, investors are not rewarded for their exposure to risk. 2013 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/26651/1/Dissertation_Themistoklis_Takkides.pdf Takkides, Themistoklis (2013) Analysis of Political News in the Greek Stock Market. [Dissertation (University of Nottingham only)] (Unpublished)
spellingShingle Takkides, Themistoklis
Analysis of Political News in the Greek Stock Market
title Analysis of Political News in the Greek Stock Market
title_full Analysis of Political News in the Greek Stock Market
title_fullStr Analysis of Political News in the Greek Stock Market
title_full_unstemmed Analysis of Political News in the Greek Stock Market
title_short Analysis of Political News in the Greek Stock Market
title_sort analysis of political news in the greek stock market
url https://eprints.nottingham.ac.uk/26651/