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Making political capital: the behaviour of the UK capital markets during Election'97

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  • J. M. Steeley

Abstract

This article examines the behaviour of the UK capital markets during the overnight trading period that coincided with the announcement of the results of the UK general election in May 1997. Evidence that the financial markets responded to the evolving pattern of results is found. In addition, the consensus move experienced as the markets opened the next trading day was influenced by the extent of the moves that had already occurred overnight..

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  • J. M. Steeley, 2003. "Making political capital: the behaviour of the UK capital markets during Election'97," Applied Financial Economics, Taylor & Francis Journals, vol. 13(2), pages 85-95.
    • Handle: RePEc:taf:apfiec:v:13:y:2003:i:2:p:85-95
    DOI: 10.1080/09603100210100873
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    1. David Byers & James Davidson & David Peel, 1997. "Modelling Political Popularity: an Analysis of Long‐range Dependence in Opinion Poll Series," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 160(3), pages 471-490, September.
    2. Riley, William B. & Luksetich, William A., 1980. "The Market Prefers Republicans: Myth or Reality," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 15(3), pages 541-560, September.
    3. Dobson, John & Dufrene, Uric B., 1993. "The impacts of U.S. presidential elections on international security-markets," Global Finance Journal, Elsevier, vol. 4(1), pages 39-47.
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    1. Faraji, Omid & Kashanipour, Mohammad & MohammadRezaei, Fakhroddin & Ahmed, Kamran & Vatanparast, Nader, 2020. "Political connections, political cycles and stock returns: Evidence from Iran," Emerging Markets Review, Elsevier, vol. 45(C).
    2. Yaser Abolghasemi & Stanko Dimitrov, 2021. "Determining the causality between U.S. presidential prediction markets and global financial markets," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(3), pages 4534-4556, July.
    3. Yi-Hsien Wang & Chung-Chu Chuang, 2009. "Selecting the portfolio investment strategy under political structure change in United States," Quality & Quantity: International Journal of Methodology, Springer, vol. 43(5), pages 845-854, September.
    4. Chung-Chu Chuang & Yi-Hsien Wang, 2009. "Developed stock market reaction to political change: a panel data analysis," Quality & Quantity: International Journal of Methodology, Springer, vol. 43(6), pages 941-949, November.

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