Government Spending, Political Cycles and the Cross Section of Stock Returns

By Frederico Belo, V. Gala, Jun Li. 2013

373 citations recorded by the source corpus.

Subfields: Accounting, Finance

View Paper: https://www.semanticscholar.org/paper/3e15e828f257f4eab2154992560ad661df90b40b

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

1. Brandon Julio
2. Tiecheng Leng
3. Julian Atanassov
4. Artyom Durnev
5. Gonul Colak
6. Yiming Qian
7. Maya Waisman
8. Yun Zhu

In Finance

1. Artyom Durnev
2. Yiming Qian
3. Brandon Julio
4. Maya Waisman
5. Yun Zhu
6. Julian Atanassov
7. Justin Hung Nguyen
8. Pengfei Ye

Citations in the corpus

• Political Uncertainty and IPO Activity: Evidence from U.S. Gubernatorial Elections (2017, background): “(2008), Wolfers and Zitzewitz (2009), Belo et al. (2013) and Kim et al. (2012) relate political outcomes to stock market performance. 2 Among others, Bernanke (1983), McDonald and Siegel (1986), Pindyck (1988), Dixit (1989), Ingersoll and Ross (1992), and Bloom (2009) theoretically examine the value”
• The effect of political uncertainty on the cost of corporate debt (2015, methodology): “To ensure that our measure of political uncertainty does not merely capture changes in the business cycle, we follow Petkova and Zhang (2005) and Belo et al (2013), and control for seven business cycle related variables, namely inflation rate, unemployment, industrial production, default spread,…”
• Political Uncertainty and Risk Premia (2013, neutral): “Other related asset pricing studies include Belo, Gala, and Li (2011), who link the cross-section of stock returns to the firms’ exposures to the government sector, and Boutchkova, Doshi, Durnev, and Molchanov (2010), who relate political uncertainty to stock volatility.”
• Political Uncertainty and Accounting Conservatism (2013, neutral): “For example, Belo et al. (2012) show that highly government-exposed”
• Economic Policy Uncertainty And Corporate Cash Holdings (2017, positive): “To test this prediction, we follow Belo et al. (2013) to first measure the magnitude of a firm’s dependence on government spending.”
• The Bright Side of Political Uncertainty: The Case of R&D (2015, background): “(2012), Pastor and Veronesi (2012, 2013), Belo et al. (2013) and Brogaard and Detzel (2015) study the impact of political uncertainty on stock returns.”
• Measuring Economic Policy Uncertainty (2016, neutral): “Column (6) uses the Belo et al. (2013) measure of industry-level exposure to government purchases, which exploits the input-output matrix to capture direct and indirect effects of government purchases.”