Presidential economic approval rating and the cross-section of stock returns

• Main Authors: CHEN, Zilin, DA, Zhi, HUANG, Dashan, WANG, Liyao
• 格式: text
• 語言: English
• 出版: Institutional Knowledge at Singapore Management University 2023
• 主題: Political cycle; Presidential economic approval rating; Presidential job approval rating; Presidential puzzle; Sentiment; Finance and Financial Management; Political Economy; Portfolio and Security Analysis
• 在線閱讀: https://ink.library.smu.edu.sg/lkcsb_research/7104; https://ink.library.smu.edu.sg/context/lkcsb_research/article/8103/viewcontent/PEAR_av.pdf

We construct a monthly presidential economic approval rating (PEAR) index from 1981 to 2019, by averaging ratings on the president’s handling of the economy across various national polls. In the cross-section, stocks with high betas to changes in the PEAR index significantly under-perform those with...