Financial markets and politics: : the Piñera Effect on the Chilean capital market

• Autores: Claudio A. Bonilla, Harold Contreras, Jean P. Sepúlveda
• Localización: Emerging Markets Finance & Trade, ISSN-e 1558-0938, Nº. 50 (Supplement Jan/Feb), 2014, págs. 121-133
• Idioma: inglés
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• Resumen

  • The 2010 presidential election in Chile marked a change from the center-left coalition that governed the country for twenty years to a center-right coalition led by politician and businessman Sebastian Piñera. We study the effect that Piñera's presidential campaign had on the Chilean capital market. By using a panel of forty-nine companies during a period of thirteen months prior to the election, we find that there was a positive and significant effect on the capital market because of the expectation that Piñera would be elected president. That expectation continued throughout the entire presidential campaign.