This paper analyzes stock market reactions to election polls. Stock markets anticipate the impact of events on future … cash flows. Current values depend on future cash flows and risk prospects. We posit that election polls are indications of … election, we hypothesize that stock market reacts negatively to the prospect of Barack Obama winning the election. We test this …

around the presidential election day …

IPOs originating from a state when it is scheduled to have an election. To establish identification, we develop a … lower IPO offer prices (hence higher costs of capital) during election years …