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Coup d'état in Africa and stock market returns: The case of French companies

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  • Boungou, Whelsy
  • Gupta, Praveen
  • Wahyono, Budi

Abstract

This article studies the impact of recent coups d'état in French-speaking Africa on the stock market performance of French companies. Using stock prices of 197 French companies over the period September 2020 to September 2023, our results highlight a negative impact of coups d'état on the stock market performance of French companies. We also observe the heterogeneity of these companies' reactions depending on: (i) the country affected by the coup; (ii) the companies' sector of activity; (iii) coups d'état with reshuffle or change of political regime; (iv) pro- or anti-France post-coup actions. In so doing, this article provides the first evidence of the impact of recent coups in Africa outside the affected territories.

Suggested Citation

  • Boungou, Whelsy & Gupta, Praveen & Wahyono, Budi, 2024. "Coup d'état in Africa and stock market returns: The case of French companies," Economics Letters, Elsevier, vol. 237(C).
    • Handle: RePEc:eee:ecolet:v:237:y:2024:i:c:s016517652400137x
    DOI: 10.1016/j.econlet.2024.111654
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    References listed on IDEAS

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    1. Gründler, Klaus, 2020. "Political Stability and Economic Prosperity: Are Coups Bad for Growth?," VfS Annual Conference 2020 (Virtual Conference): Gender Economics 224640, Verein für Socialpolitik / German Economic Association.
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    5. Arindrajit Dube & Ethan Kaplan & Suresh Naidu, 2011. "Coups, Corporations, and Classified Information," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 126(3), pages 1375-1409.
    6. Philip Barrett & Mariia Bondar & Sophia Chen & Mali Chivakul & Deniz Igan, 2024. "Pricing protest: the response of financial markets to social unrest," Review of Finance, European Finance Association, vol. 28(4), pages 1419-1450.
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    More about this item

    Keywords

    Coup d’état; Stock market; French companies;
    All these keywords.

    JEL classification:

    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

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