The Impacts of Political Risk to Financial Market Stability

Tang, Yip Ting Trevor (2018) The Impacts of Political Risk to Financial Market Stability. [Dissertation (University of Nottingham only)]

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Abstract

This paper aims to investigate the impacts of political risk to financial market stability in a broader approach. A greater variety of political risks are included such as legal system, violence, and terrorism. In addition, the different impacts between (1) Developed and Developing countries and (2) Democratic and Non-Democratic countries are assessed. The research is conducted in a quantitative approach by using a sample of 20 countries with 10 years of data. It considers distinct definitions of financial market stability by introducing comparable proxies.

The results found that political risk has significant impacts on financial market stability. The diverse outcomes also suggested that there are significant differences in term of effect between groups. Even though the results have been restricted by certain limitations, it can still enhance the understanding of the specific impacts of political risk to the financial sector in countries with distinct characteristics. At the end, the research suggests various solutions to handle the political risk like enhancing the information circulation and the risk management framework.

Item Type: Dissertation (University of Nottingham only)
Depositing User: Tang, Yip
Date Deposited: 07 Apr 2022 15:46
Last Modified: 07 Apr 2022 15:46
URI: https://eprints.nottingham.ac.uk/id/eprint/53953

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