Brazil’s 2014 presidential elections: the interconnection between election news and stock market behavior

This study researches whether there has been abnormal stock market behaviour in Brazil as a consequence of election news (observed via opinion polls), regarding the last Brazilian presidential election, held in October 2014. Via applying event study methodology, the research on the Ibovespa and Petr...

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Detalles Bibliográficos
Autor: Werth, Luca Camilla
Tipo de recurso: tesis de maestría
Estado:Versión publicada
Fecha de publicación:2016
País:Brasil
Institución:Fundação Getulio Vargas (FGV)
Repositorio:Repositório Institucional do FGV (FGV Repositório Digital)
Idioma:inglés
OAI Identifier:oai:repositorio.fgv.br:10438/15269
Acceso en línea:http://hdl.handle.net/10438/15269
Access Level:acceso abierto
Palabra clave:Political news in finance
Event study
2014 Brazilian Elections
Abnormal returns
Notícias políticas em finanças
Estudos de evento
Retornos anormais
Eleições brasileiras
Economia
Mercado financeiro
Ações (Finanças)
Eleições - Brasil
Descripción
Sumario:This study researches whether there has been abnormal stock market behaviour in Brazil as a consequence of election news (observed via opinion polls), regarding the last Brazilian presidential election, held in October 2014. Via applying event study methodology, the research on the Ibovespa and Petrobras suggests that events in which Rousseff was gaining in share have been subject to negative abnormal returns, and events where Rousseff was loosing in share have led to positive abnormal returns. Moreover, volatility has been significantly elevated during the election period and volume has been found to have slightly increased.