The impact of political events on the portuguese stock market

• Autor(a) principal: Tapada, João Pedro de Sousa e Brito
• Data de Publicação: 2022
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10071/24996
• topic: Bolsa de valores -- Stock exchange; Eleição -- Election; Portuguese stock index; Política -- Politics; Capital markets; Índice bolsista português; Mercado de capitais

Stock Markets are one of today ́s greatest asset for investors, nonetheless, Political Events can be one of today ́s biggest challenge, as they add a crucial component: Uncertainty. This study aims to understand the impact of (Portuguese) Political Events on the Portuguese Stock Market. Specifically, it investigates the complex relations between these concepts, while analyzing how developments in each field both influence and are influenced by each other. To provide relevant conclusions, an extensive literature review regarding classical theories and past academic works was carried, as well as, considerations regarding a more recent approach to stock markets: Sentimental Analysis. Furthermore, a statistical analysis was performed using two different methodologies; Event Study and the Regression Analysis. The results obtained show that are significant influences and connections between Political Events and the Portuguese Stock Index (PSI-Geral): On this basis, conclusions were drawn such as Regional Elections impact positively the Index, on the other hand, European Elections have a negative impact. Another main conclusion is that Negative Political News have more weight that Positive Political News. This study intends to provide relevant information to market investors in the evaluation process for future investments.