Good coups, bad coups: evidence from Thailand’s financial markets
This study investigates the short-run and long-run impact of coups on Thailand’s financial markets. Using daily data from the stock and foreign exchange markets during the period 2005–2017, the study shows (1) both coups in 2006 and in 2014 exert short-run impact on Thailand’s stock and foreign exch...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
LLC "CPC "Business Perspectives"
2018-05-01
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| Series: | Investment Management & Financial Innovations |
| Subjects: | |
| Online Access: | https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/10287/imfi_2018_02_Lumjiak.pdf |
| _version_ | 1818135494050971648 |
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| author | Sutsarun Lumjiak Nguyen Thi Thieu Quang Christopher Gan Sirimon Treepongkaruna |
| author_facet | Sutsarun Lumjiak Nguyen Thi Thieu Quang Christopher Gan Sirimon Treepongkaruna |
| author_sort | Sutsarun Lumjiak |
| collection | DOAJ |
| description | This study investigates the short-run and long-run impact of coups on Thailand’s financial markets. Using daily data from the stock and foreign exchange markets during the period 2005–2017, the study shows (1) both coups in 2006 and in 2014 exert short-run impact on Thailand’s stock and foreign exchange markets; (2) however, the direction and magnitude of impact are different and opposite in the two coups; and (3) in the long run, the coups exhibit minimal impact on the currency market, but induce better market performance (positive return and decrease in the return volatility) despite an increase in liquidity risk of the stock market. Against common beliefs about negative consequences of the coup d’états, this study suggests that the uncertainty surrounding coups can bring good investment opportunities for investors to earn abnormal profits. Moreover, in the long term, the coup can drive the country to better stability and development. |
| first_indexed | 2024-12-11T09:25:24Z |
| format | Article |
| id | doaj.art-a666d424fd284133ae5e757f3f5b13c6 |
| institution | Directory Open Access Journal |
| issn | 1810-4967 1812-9358 |
| language | English |
| last_indexed | 2024-12-11T09:25:24Z |
| publishDate | 2018-05-01 |
| publisher | LLC "CPC "Business Perspectives" |
| record_format | Article |
| series | Investment Management & Financial Innovations |
| spelling | doaj.art-a666d424fd284133ae5e757f3f5b13c62022-12-22T01:13:09ZengLLC "CPC "Business Perspectives"Investment Management & Financial Innovations1810-49671812-93582018-05-01152688610.21511/imfi.15(2).2018.0710287Good coups, bad coups: evidence from Thailand’s financial marketsSutsarun Lumjiak0Nguyen Thi Thieu Quang1Christopher Gan2Sirimon Treepongkaruna3Ministry of Education, BangkokPh.D. Candidate, Department of Financial and Business Systems, Faculty of Agribusiness and Commerce, Lincoln UniversityProfessor, Department of Financial and Business Systems, Faculty of Agribusiness and Commerce, Lincoln UniversityProfessor, University of Western Australia, Business SchoolThis study investigates the short-run and long-run impact of coups on Thailand’s financial markets. Using daily data from the stock and foreign exchange markets during the period 2005–2017, the study shows (1) both coups in 2006 and in 2014 exert short-run impact on Thailand’s stock and foreign exchange markets; (2) however, the direction and magnitude of impact are different and opposite in the two coups; and (3) in the long run, the coups exhibit minimal impact on the currency market, but induce better market performance (positive return and decrease in the return volatility) despite an increase in liquidity risk of the stock market. Against common beliefs about negative consequences of the coup d’états, this study suggests that the uncertainty surrounding coups can bring good investment opportunities for investors to earn abnormal profits. Moreover, in the long term, the coup can drive the country to better stability and development.https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/10287/imfi_2018_02_Lumjiak.pdfcoupsinstabilityriskstock markets |
| spellingShingle | Sutsarun Lumjiak Nguyen Thi Thieu Quang Christopher Gan Sirimon Treepongkaruna Good coups, bad coups: evidence from Thailand’s financial markets Investment Management & Financial Innovations coups instability risk stock markets |
| title | Good coups, bad coups: evidence from Thailand’s financial markets |
| title_full | Good coups, bad coups: evidence from Thailand’s financial markets |
| title_fullStr | Good coups, bad coups: evidence from Thailand’s financial markets |
| title_full_unstemmed | Good coups, bad coups: evidence from Thailand’s financial markets |
| title_short | Good coups, bad coups: evidence from Thailand’s financial markets |
| title_sort | good coups bad coups evidence from thailand s financial markets |
| topic | coups instability risk stock markets |
| url | https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/10287/imfi_2018_02_Lumjiak.pdf |
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