Political crisis and behavior of the securities markets
application to the Peruvian case
DOI:
https://doi.org/10.18050/ecn.v2i2.1878Keywords:
Political crisis, Favorable political events, Unfavorable political events, Efficient market, Profitability of the BVLAbstract
The objective of the present investigation has been to determine the existence of a relationship between political crisis and behavior ofsecurities markets,specifically applied to the Peruvian case. The research has had a mixed approach, of non-experimental design and of longitudinal cut, of descriptive-correlational scope, using the methodology ofstudy of events. While the variable political crisis"was operationalized through the documentary observation of 36 political events that occurred in the period December 2017 - March 2018, the variable behavior of the stock markets"was through the measurement of the profitability of the Lima Stock Exchange (BVL), that is, the daily percentage variation of the SP / BVL Peru General corresponding to the 36 political events. The results have shown that there is no statistically significant relationship between political crisis and profitability of the securities markets. Thissuggeststhat the political crisis has been incorporated by investors as part of their politicalrisk and the events do notrepresent a majorsurprise. Finally, the possibility of carrying out new studies to discern the unexpected part of the information to measure its impact on the profitability of the securities marketsremains open.
