Abstract
As the primary entity responsible for new legislation, Congress is capable of enacting legislation that may affect future market returns. To examine potential effects, the percentage of the House of Representatives and Senate controlled by a political party is examined. Additionally, the effect on returns in a change in the percentage of seats gained or lost in Congressional elections is analyzed. To test both theories, a modified “partisan view” model is adopted. Results point to the fact that equity markets perform better in situations in which power is distributed between political parties.
Recommended Citation
V. L. Ovlia et al., "The Effects of Congressional Elections on Future Equity Market Returns," Global Journal of Business Research, vol. 2, no. 1, pp. 1 - 15, Institute for Business and Finance Research (IBFR), Jan 2008.
Department(s)
Engineering Management and Systems Engineering
Second Department
Economics
Document Type
Article - Journal
Document Version
Final Version
File Type
text
Language(s)
English
Rights
© 2008 Institute for Business and Finance Research (IBFR), All rights reserved.
Publication Date
01 Jan 2008
Included in
Economics Commons, Operations Research, Systems Engineering and Industrial Engineering Commons
