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Financial and real sector returns, IMF-related news, and the Asian crisis

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  • Kutan, Ali M.
  • Muradoğlu, Yaz G.

Abstract

We investigate how investors trading in financial and real sectors of a stock market react to IMF announcements during abnormal times, such as a financial crisis. To do so, we examine the impact of IMF-program and negotiation news on financial and real stock sectors in Indonesia, Korea and Thailand during the Asian crisis using time-varying models. The results indicate that IMF actions affect sector returns differently suggesting different wealth effects of IMF programs on investor wealth.

Suggested Citation

  • Kutan, Ali M. & Muradoğlu, Yaz G., 2016. "Financial and real sector returns, IMF-related news, and the Asian crisis," Finance Research Letters, Elsevier, vol. 16(C), pages 28-37.
    • Handle: RePEc:eee:finlet:v:16:y:2016:i:c:p:28-37
    DOI: 10.1016/j.frl.2015.10.016
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    More about this item

    Keywords

    IMF policy; Bailouts; Asian crisis; Emerging markets; Investor behavior;
    All these keywords.

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration

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