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Political Uncertainty (political + uncertainty)

Distribution by Scientific Domains
Business, Economics, Finance and Accounting66%

Selected Abstracts

The Value Relevance of Accounting under Political Uncertainty: Evidence Related to Quebec's Independence Movement

JOURNAL OF INTERNATIONAL FINANCIAL MANAGEMENT & ACCOUNTING, Issue 1 2005
Roger C. Graham Jr.
The Canadian province of Quebec is a region of an advanced industrialized nation characterized by a strong independence movement and, therefore, provides an interesting context in which to test the effect of political uncertainty on the relationship between market values and accounting values. In this study we compare market-to-book value associations of a sample of firms headquartered in Quebec with those of a sample of Canadian firms headquartered outside Quebec, over the period 1988,2002. Our comparisons suggest that, on average, the value of Quebec-based firms is significantly less than other Canadian firms when valuation is based on multiples of book value and earnings. In addition, we find that the "Quebec discount" decreased significantly in the period immediately following the 1995 provincial sovereignty referendum wherein Quebeckers voted (narrowly) against Quebec sovereignty. We conclude that the relative undervaluation of Quebec firms is related, at least in part, to political uncertainty associated with the Quebec independence movement. [source]

Political uncertainty and stock market returns: evidence from the 1995 Quebec referendum

CANADIAN JOURNAL OF ECONOMICS, Issue 2 2006
Marie-Claude Beaulieu
Our results show that the uncertainty surrounding the referendum outcome had an impact on stock returns of Quebec firms. We also find that the effect of the referendum varied with the political risk exposure of Quebec firms, that is, the structure of assets and principally the degree of foreign involvement. JEL classification: G14, G15 L'incertitude politique et rendements boursiers: Résultats relatifs au référendum québécois de 1995., Dans cette étude, nous examinons l'impact à court terme du référendum québécois du 30 octobre 1995 sur les rendements boursiers d'entreprises ayant leur siège social au Québec. Nos résultats suggèrent que l'incertitude entourant les résultats du référendum a eu un effet à court terme sur les rendements boursiers des entreprises québécoises. Ils montrent aussi que l'impact du référendum a varié avec l'exposition des entreprises québécoises au risque politique, à savoir, leur type d'actifs et surtout leur degré de participation étrangère. [source]

Private Investment and Political Institutions

ECONOMICS & POLITICS, Issue 1 2002
David Stasavage
Recent research has demonstrated a negative link between macroeconomic and political uncertainty and levels of private investment across countries. This raises the question whether certain types of government institutions might help reduce this uncertainty. North and Weingast (1989) propose that political institutions characterized by checks and balances can have beneficial effects on investment by allowing governments to credibly commit not to engage in ex post opportunism with respect to investors. In this paper I develop and test a modified version of their hypothesis, suggesting that checks and balances, on average, improve possibilities for commitment, but that they are not a necessary condition for doing so. Results of heteroskedastic regression and quantile regression estimates strongly support this proposition. [source]

The Value Relevance of Accounting under Political Uncertainty: Evidence Related to Quebec's Independence Movement

JOURNAL OF INTERNATIONAL FINANCIAL MANAGEMENT & ACCOUNTING, Issue 1 2005
Roger C. Graham Jr.
The Canadian province of Quebec is a region of an advanced industrialized nation characterized by a strong independence movement and, therefore, provides an interesting context in which to test the effect of political uncertainty on the relationship between market values and accounting values. In this study we compare market-to-book value associations of a sample of firms headquartered in Quebec with those of a sample of Canadian firms headquartered outside Quebec, over the period 1988,2002. Our comparisons suggest that, on average, the value of Quebec-based firms is significantly less than other Canadian firms when valuation is based on multiples of book value and earnings. In addition, we find that the "Quebec discount" decreased significantly in the period immediately following the 1995 provincial sovereignty referendum wherein Quebeckers voted (narrowly) against Quebec sovereignty. We conclude that the relative undervaluation of Quebec firms is related, at least in part, to political uncertainty associated with the Quebec independence movement. [source]

Budgeting for the budget

ASTRONOMY & GEOPHYSICS, Issue 3 2009
Article first published online: 29 MAY 200
In a time of tight belts and political uncertainty in the UK, a budget settlement that does not decrease money awarded to science has to be a good step, but it is clear that the maintenance of funding announced last month has a price for the research councils. [source]

The Rise and Fall of Euro Preparations: Strategic Networking and the Depoliticisation of Labour's National Changeover Plan

BRITISH JOURNAL OF POLITICS & INTERNATIONAL RELATIONS, Issue 3 2010
Scott James
Although much has been written about Labour's policy towards the European single currency, few studies have explored the Treasury-led process of preparing Britain for changeover. The article attempts to address this by employing a strategic-relational framework to map the contours of the euro preparations network, to identify the key stakeholders and to chart its development between 1998 and 2008. It argues that by establishing an autonomous policy network, the government was able to pursue a highly effective strategy of depoliticisation by separating the logistical preparations for changeover from the political decision over whether to join the euro. The article also demonstrates the value of strategic networking as a flexible mechanism for managing political uncertainty and retaining institutional memory by placing the euro preparations process into hibernation after 2005. [source]