Impact Of Political News: Evidence From Russia
The following research is dedicated to the analysis of political events’ impact on price dynamics of Russian stock market financial assets. In recent times, in line with the sharpening of internal and external political clashes, such events significantly affect the country’s financial system. However, this issue is insufficiently considered on Russian market. Constructed econometric GARCH models allowed unambiguously characterizing the impact of political events on return and volatility of financial assets. Moreover, the effects of leverage and clusterization were also assessed. The provided research discloses the impact of political events on the market as a whole as well as on separate industries. It was demonstrated that the obtained results are similar to the ones from other developing markets, however, the particularity of Russian stock market was also revealed. As the obtained results disclose the peculiarities of price formation on Russian market, they will be useful for domestic and foreign investors, operating on Russian stock market, other market participants and specialists in financial science. Analysis of a wider range of political events is a considerable advantage of the present research in comparison with the other papers that cover the Russian market. As a result, the market reaction to such events’ manifestation was studied more thoroughly.
In this paper, we empirically test the dependence of the Russian stock market on the world stock market, world oil prices and Russian political and economic news during the period 2001–2010. We find that oil prices are not significant after 2006, and the Japan stock index is significant over the whole period, since it is the nearest market index in terms of closing time to the Russian stock index. We find that political news like the Yukos arrests or news on the Georgian war have a short-term impact, since there are many other shocks. These factors confirm the structural instability of the Russian financial market.
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Smoking is a problem, bringing signifi cant social and economic costs to Russiansociety. However, ratifi cation of the World health organization Framework conventionon tobacco control makes it possible to improve Russian legislation accordingto the international standards. So, I describe some measures that should be taken bythe Russian authorities in the nearest future, and I examine their effi ciency. By studyingthe international evidence I analyze the impact of the smoke-free areas, advertisementand sponsorship bans, tax increases, etc. on the prevalence of smoking, cigaretteconsumption and some other indicators. I also investigate the obstacles confrontingthe Russian authorities when they introduce new policy measures and the public attitudetowards these measures. I conclude that there is a number of easy-to-implementanti-smoking activities that need no fi nancial resources but only a political will.
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