The impact of party alternative on the stock market: the case of Japan

Authors: Lin, Chin-Tsai; Wang, Yi-Hsien

Source: Applied Economics, Volume 39, Number 1, January 2007 , pp. 79-85(7)

Publisher: Routledge, part of the Taylor & Francis Group

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Abstract:

This paper tries to clarify whether change in political regime has an effect on the behaviour of the stock market in Japan. The empirical study finds that the transition of ruling party effect is not a crucial variable to the Nikkei 225. The alienation felt by the Japanese about the political environment, resulting in a succession of prime ministers, does not influence the Nikkei 225 stock market behaviour. Therefore, former prime ministers who have resigned have become scapegoats for the poor performance of financial and economic policies.

Document Type: Research article

DOI: http://dx.doi.org/10.1080/00036840500427882

Affiliations: 1: Graduate School of Management, Ming Chuan University, Taiwan, ROC

Publication date: 2007-01-01

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