Financial Market Reactions to the Political Uncertainty. Study Case: Romania
The goal of this paper is to identify the influence of the economic policy and political uncertainty on the Romania stock market. We used the Bollinger Bands set at two standard deviations and Bollinger Bandwidth Indicator in order to emphasize volatility. By applying technical indicators on the BET...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Ovidius University Press
2020-01-01
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| Series: | Ovidius University Annals: Economic Sciences Series |
| Subjects: | |
| Online Access: | https://stec.univ-ovidius.ro/html/anale/RO/wp-content/uploads/2021/03/Section%205/39.pdf |
| _version_ | 1818560417586216960 |
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| author | Luciana Simion Georgiana-Loredana Schipor |
| author_facet | Luciana Simion Georgiana-Loredana Schipor |
| author_sort | Luciana Simion |
| collection | DOAJ |
| description | The goal of this paper is to identify the influence of the economic policy and political uncertainty on the Romania stock market. We used the Bollinger Bands set at two standard deviations and Bollinger Bandwidth Indicator in order to emphasize volatility. By applying technical indicators on the BET-XT index between 2018 – 2020, the findings show that political uncertainty influences the index evolution. Our study shows that the magnitude of the impact of policy measures is stronger than the impact of events such as presidential, local or European parliamentary elections, cabinet formation and dissolution. The study reveals an asymmetry of the index volatility, in the sense that unexpected “shock” type events with negative impact determined a much higher volatility. The SPSS analysis reveals the indirect correlation between the number of COVID-19 daily registered cases in Romania, as major panic factor at the beginning of the pandemic, and the BET-XT evolution. |
| first_indexed | 2024-12-14T00:38:12Z |
| format | Article |
| id | doaj.art-99a14c5c5c0d4568a84602c45ba52294 |
| institution | Directory Open Access Journal |
| issn | 2393-3127 2393-3127 |
| language | English |
| last_indexed | 2024-12-14T00:38:12Z |
| publishDate | 2020-01-01 |
| publisher | Ovidius University Press |
| record_format | Article |
| series | Ovidius University Annals: Economic Sciences Series |
| spelling | doaj.art-99a14c5c5c0d4568a84602c45ba522942022-12-21T23:24:31ZengOvidius University PressOvidius University Annals: Economic Sciences Series2393-31272393-31272020-01-01XX210721080Financial Market Reactions to the Political Uncertainty. Study Case: RomaniaLuciana Simion0Georgiana-Loredana Schipor1Bucharest University of Economic Studies“Ovidius” University of ConstantaThe goal of this paper is to identify the influence of the economic policy and political uncertainty on the Romania stock market. We used the Bollinger Bands set at two standard deviations and Bollinger Bandwidth Indicator in order to emphasize volatility. By applying technical indicators on the BET-XT index between 2018 – 2020, the findings show that political uncertainty influences the index evolution. Our study shows that the magnitude of the impact of policy measures is stronger than the impact of events such as presidential, local or European parliamentary elections, cabinet formation and dissolution. The study reveals an asymmetry of the index volatility, in the sense that unexpected “shock” type events with negative impact determined a much higher volatility. The SPSS analysis reveals the indirect correlation between the number of COVID-19 daily registered cases in Romania, as major panic factor at the beginning of the pandemic, and the BET-XT evolution.https://stec.univ-ovidius.ro/html/anale/RO/wp-content/uploads/2021/03/Section%205/39.pdfpolitical uncertaintyvolatilityfinancial marketbet-xt |
| spellingShingle | Luciana Simion Georgiana-Loredana Schipor Financial Market Reactions to the Political Uncertainty. Study Case: Romania Ovidius University Annals: Economic Sciences Series political uncertainty volatility financial market bet-xt |
| title | Financial Market Reactions to the Political Uncertainty. Study Case: Romania |
| title_full | Financial Market Reactions to the Political Uncertainty. Study Case: Romania |
| title_fullStr | Financial Market Reactions to the Political Uncertainty. Study Case: Romania |
| title_full_unstemmed | Financial Market Reactions to the Political Uncertainty. Study Case: Romania |
| title_short | Financial Market Reactions to the Political Uncertainty. Study Case: Romania |
| title_sort | financial market reactions to the political uncertainty study case romania |
| topic | political uncertainty volatility financial market bet-xt |
| url | https://stec.univ-ovidius.ro/html/anale/RO/wp-content/uploads/2021/03/Section%205/39.pdf |
| work_keys_str_mv | AT lucianasimion financialmarketreactionstothepoliticaluncertaintystudycaseromania AT georgianaloredanaschipor financialmarketreactionstothepoliticaluncertaintystudycaseromania |