Relationship Among Political Instability, Stock Market Returns and Stock Market Volatility

Abstract

This study investigated the relationship of political instability with the stock prices. Results of the study indicated the negative relationship of stock prices with political instability. Moreover, results of suggested that instable political system ultimately leads decline in stock prices. Inflation has shown negative relationship with stock prices whereas, industrial production and Exports have positive relationship with stock prices.

Keywords

• political instability
• stock market returns
• stock market instability
• corporate investing behaviour