The Risk of Investing in US Securities in the Process of Elections in the US

Student: Dobrynin Vadim

Educational Programme: Economics (Bachelor)

Year of Graduation: 2017

This paper analyzes the impact of the US presidential election in 2016 on stock prices of companies traded on the new York stock exchange (NYSE). Covers the following industries: Finance, healthcare, telecommunications and insurance. As a method of assessment uses the methodology of event analysis (event study). In work was analyzed the average abnormal stock returns of companies, the average cumulative excess return. In conclusion the carried out hypothesis testing for statistical significance of average cumulative abnormal returns and comparative analysis of different number of days of event Windows. Thus, in the course of work were the findings that industries need to apply the event study for several event Windows, which shows the importance of each industry in a certain event window. It was also found that in the electoral process, in addition, the market reacts to what they say the presidential aspirants ahead of the elections.

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