Int J Fin Econ - 2020 - Nguyen - Political environment and financial crises.pdf (1.28 MB)
Political environment and financial crises
journal contribution
posted on 2020-07-02, 15:03 authored by Thanh Nguyen, Vitor CastroVitor Castro, Justine WoodJustine WoodThis paper assesses the role of the political environment in the timing of financial crises over a sample of 85 countries during the period 1975-2017. We consider systemic banking, currency, and sovereign debt crises in addition to twin and triple crises. Using a fixed effects logit model, this study shows that banking and currency crises are more likely to occur within one year after elections. There is also evidence that the probability of currency crises increases when right-wing parties are in office. Moreover, time in office of incumbent chief executives reduces the likelihood of any type of financial crises. The incidence of twin and triple crises is lower when majority governments are in office. This study contributes to the literature by calling attention to the importance of some political factors for different types of financial crises.
History
School
- Business and Economics
Department
- Business
- Economics
Published in
International Journal of Finance and EconomicsVolume
27Issue
1Pages
417 - 438Publisher
WileyVersion
- VoR (Version of Record)
Rights holder
© The AuthorsPublisher statement
This is an open access article under the terms of the Creative Commons Attribution (https://creativecommons.org/licenses/by/4.0/) License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited.Acceptance date
2020-06-30Publication date
2020-08-10Copyright date
2020ISSN
1076-9307eISSN
1099-1158Publisher version
Language
- en
Depositor
Dr Vitor Castro. Deposit date: 2 July 2020Usage metrics
Categories
No categories selectedLicence
Exports
RefWorks
BibTeX
Ref. manager
Endnote
DataCite
NLM
DC