This paper studies whether the evidence supports the political business cycle (PBC) theory, partisan theory (PT) and rational partisan theory (RPT) by using stock market data from Turkey, a rapidly growing developing economy. In addition, we examine the impact of political events on the returns...

We analyze the interaction of stock market movements and politics in Germany. In contrast to the empirical evidence available for the U.S., we do not find that German stock market returns tend to be higher during liberal than during conservative governments. Also in contrast to results for the...