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Articles

Vol. 12 No. 47 (2017)

Presidential elections, stock market reactionsand investor sentiment in Mexico

  • Michael Demmler
  • Felipe A Pérez Sosa
DOI:
https://doi.org/10.29201/cde29k29
Published
December 15, 2017

Abstract

The aim of this paper is to analyze the effect of presidential elections in Mexico on the Mexican Stock Exchange by assessing possible significant changes on its behavior during the presidential elections using the Analysis of Variance (ANOVA) analysis. Structural changes were identified in two of our analyzed samples, so the hypothesis of an existing influence of the elections on investor sentiment and so on stock prices is partially accepted. A more detailed analysis or these changes is suggested in order to better understand the behavior of investors and their influence on financial markets.

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