Behavioural finance : impact of government protests on Asian Stock Indexes.

• Main Authors: Ng, Yvonne Chu Yan., Soon, Peiyu., Tan, Pei Ru.
• Other Authors: Li Ka Ki Jackie
• Format: Final Year Project
• Language: English
• Published: 2009
• Subjects: DRNTU::Business::Finance::Stock exchanges
• Online Access: http://hdl.handle.net/10356/15062
• Institution: Nanyang Technological University

This paper employs a novel mood variable - protests against governments - to examine the effect of investors’ sentiments on stock prices. The countries involved in this study comprise the five major countries within the Association of Southeast Asian Nations (ASEAN), namely Singapore, Malaysia, Indonesia, Philippines and Thailand. Through the analysis of our results, we find that protest events would lead to a significant increase in the correlation coefficients of the home country and its neighbouring countries. We hope that investors are able to use the findings derived from this study to wisely invest in and accurately predict a country’s index, particularly in the aftermath of such protests.