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Do Local Political Elections Affect Daily Stock Returns? Evidence from the Republic of North Macedonia's MBI10 Index

Author

Listed:
  • Deari Fitim

    (South East European University, Faculty of Business and Economics, Tetovo, Republic of North Macedonia)

  • Koku Paul Sergius

    (Florida Atlantic University, College of Business Boca Raton, Florida, USA)

Abstract

Even though “all politics” are supposedly “local”, as reportedly said Tip O’Neil, the majority of studies on the link between politics and finance focused on presidential elections. This argues that overlooking local elections could result in a gap in the literature, thus it focused on the effect of the 2021 local elections on the stock market in the Republic of North Macedonia. The results could not reject the null hypothesis that local elections did not have any statistically significant effect on the stock prices as only 10% of the stocks traded experienced significant abnormal returns during the election period.

Suggested Citation

  • Deari Fitim & Koku Paul Sergius, 2024. "Do Local Political Elections Affect Daily Stock Returns? Evidence from the Republic of North Macedonia's MBI10 Index," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 34(1), pages 98-116, March.
    • Handle: RePEc:vrs:suvges:v:34:y:2024:i:1:p:98-116:n:3
    DOI: 10.2478/sues-2024-0005
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    References listed on IDEAS

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    More about this item

    Keywords

    political elections; stocks returns; MBI10 Index;
    All these keywords.

    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading

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