Effects of political uncertainty on capital markets
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School of Business |
Bachelor's thesis
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Author
Date
2023
Department
Major/Subject
Mcode
Degree programme
Laskentatoimi
Language
en
Pages
19
Series
Abstract
During the last three years, the world has experienced two major events that have had great economic and political significance. In 2020, the Covid-19 pandemic caused great uncertainty in the entire global economy and related decisions. Political decisions greatly impacted the operating environment of companies and the opportunities to do business. This was reflected in large fluctuations in the stock market. In 2022, Russia started a war against Ukraine, and this had a significant impact, especially on the European market due to its close location and high dependence on raw materials. The recent escalations of political risks are part of the justification for why their impact on capital markets and their importance in companies' decision-making should be studied more. In this work, I aim to create a general picture of the effects of political risks on the capital market, especially from the perspective of companies.Description
Thesis advisor
Guo, MengKeywords
political risk, foreign direct investments, foreign portfolio investments, Covid-19 pandemic, Russia-Ukraine war
