Revistas Académicas WoS

Financial markets and politics: The Piñera effect on the chilean capital market

The 2010 presidential election in Chile marked a change from the center-left coalition that governed the country for twenty years to a center-right coalition led by politician and businessman Sebastian Piñera. We study the effect that Piñera's presidential campaign had on the Chilean capital market. By using a panel of forty-nine companies during a period of thirteen months prior to the election, we find that there was a positive and significant effect on the capital market because of the expectation that Piñera would be elected president. That expectation continued throughout the entire presidential campaign.

Emerging Markets Finance and Trade, Vol. 50, pp. 121 - 133, 2014
Autor(es): Bonilla Claudio, Contreras Harold, Sepúlveda Jean