Research Article
Investor Attention, Political Risk, and Financial Markets: Evidence from the Brexit Event Study on China’s Stock Market
@INPROCEEDINGS{10.4108/eai.24-5-2024.2350148, author={Yanping Ma and Qian Wei and Xiang Gao}, title={Investor Attention, Political Risk, and Financial Markets: Evidence from the Brexit Event Study on China’s Stock Market}, proceedings={Proceedings of the 3rd International Conference on Mathematical Statistics and Economic Analysis, MSEA 2024, May 24--26, 2024, Jinan, China}, publisher={EAI}, proceedings_a={MSEA}, year={2024}, month={10}, keywords={investor attention; political risk; financial markets; event study}, doi={10.4108/eai.24-5-2024.2350148} }- Yanping Ma
Qian Wei
Xiang Gao
Year: 2024
Investor Attention, Political Risk, and Financial Markets: Evidence from the Brexit Event Study on China’s Stock Market
MSEA
EAI
DOI: 10.4108/eai.24-5-2024.2350148
Abstract
This paper studies how the domestic financial market responds to the adverse im-pact of foreign political events. Using the Brexit vote as a natural experiment, we focus on the role investor attention played in Chinese stock market performance under political uncertainty originating from the UK. Our findings show that investor attention exerts a mitigating effect on the negative relationship between political risk, as proxied by the Brexit shock, and financial market performance in China. These findings provide important insights for policymakers in guiding market recovery and managers in building business resilience.
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