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Financial Red Flags: Empirical Mapping Of Firm Political Preferences By Sector In Mexico, Ian Connors
Financial Red Flags: Empirical Mapping Of Firm Political Preferences By Sector In Mexico, Ian Connors
Master's Theses
Can the stock market be used to determine the political preferences of individual economic sectors? This paper explores the conceptual relationship between electoral outcomes and financial markets in Mexico. Specifically, it analyzes how financial markets predict the expected effects of a given political platform on the performance of firms within specific sectors. To do this, the study used event-study methodology to calculate abnormal returns on stock prices across the nine sectors listed on the Bolsa Mexicana de Valores stock exchange following the historic election of leftist candidate Andrés Manuel López Obrador (AMLO), On July 1, 2018. However, despite the uncertainty …