We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
THE EFFECT OF COUNTRY RISK ON STOCK PRICES: AN APPLICATION IN BORSA ISTANBUL.
- Authors
KARA, Esen; KARABIYIK, Lale
- Abstract
This study examines the effects of country risk premiums on the stock prices. For this purpose, the relationship between the variables of economic risk, financial risk, political risk and country risk commonly used and calculated by the ICRG (International Country Risk Guide) and the BIST 100 index has been analysed, for the period of 1999:01-2013:12, by using Johansen Cointegration Test and Vector Error Correction Model. The findings obtained from the study reveal the presence of a short and long-term causality moving from the risk premiums in question to the stock prices. The regression estimates carried out indicate that the premiums of economic, financial, political and county risks have a negative effect over the stock prices.
- Publication
Suleyman Demirel University Journal of Faculty of Economics & Administrative Sciences, 2015, Vol 20, Issue 1, p225
- ISSN
1301-0603
- Publication type
Academic Journal