Political Risk and Foreign Exchange Rates: an Efficient-Market Approach

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Jean-Claude Cosset; Bruno Doutriaux de la Rianderie;
  • Journal: Journal of International Business Studies,volume 16,issue 3 September,pages21-55

This paper examines the reaction of the foreign exchange market to the announcement of changes in the business environment of a country. Our results suggest that sampled political risk news conveys important information about a country's investment climate and causes it... View more
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