{"id":{"repo_id":"cornell","oai_identifier":"oai:ecommons.cornell.edu:1813/111657"},"canonical_url":"https://search.dev.ndltd.org/etd/cornell/oai:ecommons.cornell.edu:1813/111657","repository":{"repo_id":"cornell","name":"Cornell University","base_url":"https://ecommons.cornell.edu/server/oai/request"},"display":{"title":"Shifts in Political Environment and Industry Momentum: Evidence from Global Stock Markets","abstract":"This paper aims to examine whether shifts in the political environment can explain industry momentum profits in global stock markets. In the U.S., Canada and Australia, I find that the politically consistent momentum strategy, which takes a long position in industries that are both winners and politically favored and a short position in industries that are both losers and politically unfavored, outperforms the standard momentum strategy. In contrast, the politically inconsistent momentum strategy, which has a long position in industries that are winners but politically unfavored and a short position in industries that are losers but politically favored does not generate significant profits. Further, I find that a political-sensitivity-based long-short portfolio explains approximately 20% to 40% of industry momentum profits in the three countries. This explanatory power is concentrated around presidential (prime minister) elections. Overall, the results support the theory that investor underreaction to political information generates momentum. In other countries in which the pattern cannot explain momentum returns, I attempt to provide a new conjecture.","abstract_html":"This paper aims to examine whether shifts in the political environment can explain industry momentum profits in global stock markets. In the U.S., Canada and Australia, I find that the politically consistent momentum strategy, which takes a long position in industries that are both winners and politically favored and a short position in industries that are both losers and politically unfavored, outperforms the standard momentum strategy. In contrast, the politically inconsistent momentum strategy, which has a long position in industries that are winners but politically unfavored and a short position in industries that are losers but politically favored does not generate significant profits. Further, I find that a political-sensitivity-based long-short portfolio explains approximately 20% to 40% of industry momentum profits in the three countries. This explanatory power is concentrated around presidential (prime minister) elections. Overall, the results support the theory that investor underreaction to political information generates momentum. In other countries in which the pattern cannot explain momentum returns, I attempt to provide a new conjecture.","abstract_has_math":false,"creators":["Wang, Zhongyang"],"institution":"Cornell University","degree_name":"M.S., Applied Economics and Management","degree_level":"Master of Science","degree_discipline":"Applied Economics and Management","degree_department":null,"school":null,"contributors":[],"advisors":[],"committee_chairs":[],"committee_members":["Murfin, Justin"],"year":2022,"date_issued":"2022-05","date_published":"2022-05","updated_at":"2026-07-24T01:49:00Z","subjects":["behavioral finance","industry momentum","momentum profits","party change","political climate"],"languages":["en"],"rights":[],"rights_urls":[],"identifier_entries":[{"key":"dc:identifier.doi","label":"DOI","values":["https://doi.org/10.7298/87zh-4j54"],"render_values":[{"text":"https://doi.org/10.7298/87zh-4j54","href":"https://doi.org/10.7298/87zh-4j54","code":true}]},{"key":"dc:identifier.other","label":"Dc Identifier Other","values":["ProQuest Submission ID: 11470","ProQuest Publication ID: 29168431"],"render_values":[{"text":"ProQuest Submission ID: 11470","href":null,"code":true},{"text":"ProQuest Publication ID: 29168431","href":null,"code":true}]}]},"links":{"outbound_url":"https://hdl.handle.net/1813/111657","outbound_label":"Handle","outbound_source":"dc:identifier.uri"},"metadata_groups":[{"id":"people","label":"People","entries":[{"key":"dc:contributor.committeemember","label":"Committee Member","values":["Murfin, Justin"]},{"key":"dc:creator","label":"Author","values":["Wang, Zhongyang"]}]},{"id":"academic_context","label":"Academic Context","entries":[{"key":"dc:date.accessioned","label":"Dc Date Accessioned","values":["2022-09-15T15:49:21Z"]},{"key":"dc:date.available","label":"Dc Date Available","values":["2022-09-15T15:49:21Z"]},{"key":"dc:date.issued","label":"Date","values":["2022-05"]},{"key":"dc:type","label":"Dc Type","values":["dissertation or thesis"]},{"key":"thesis:degree_discipline","label":"Discipline","values":["Applied Economics and Management"]},{"key":"thesis:degree_level","label":"Degree Level","values":["Master of Science"]},{"key":"thesis:degree_name","label":"Degree Name","values":["M.S., Applied Economics and Management"]},{"key":"thesis:institution_name","label":"Thesis Institution Name","values":["Cornell University"]}]},{"id":"subjects_keywords","label":"Subjects and Keywords","entries":[{"key":"dc:subject","label":"Dc Subject","values":["behavioral finance","industry momentum","momentum profits","party change","political climate"]}]},{"id":"language_rights","label":"Language and Rights","entries":[{"key":"dc:language.iso","label":"Language (ISO)","values":["en"]}]},{"id":"identifiers","label":"Identifiers","entries":[{"key":"dc:identifier.doi","label":"DOI","values":["https://doi.org/10.7298/87zh-4j54"]},{"key":"dc:identifier.other","label":"Dc Identifier Other","values":["ProQuest Submission ID: 11470","ProQuest Publication ID: 29168431"]},{"key":"dc:identifier.uri","label":"Identifier URI","values":["https://hdl.handle.net/1813/111657"]}]},{"id":"additional","label":"Additional Metadata","entries":[{"key":"dc:description","label":"Description","values":["55 pages"]},{"key":"dc:description.abstract","label":"Abstract","values":["This paper aims to examine whether shifts in the political environment can explain industry momentum profits in global stock markets. In the U.S., Canada and Australia, I find that the politically consistent momentum strategy, which takes a long position in industries that are both winners and politically favored and a short position in industries that are both losers and politically unfavored, outperforms the standard momentum strategy. In contrast, the politically inconsistent momentum strategy, which has a long position in industries that are winners but politically unfavored and a short position in industries that are losers but politically favored does not generate significant profits. Further, I find that a political-sensitivity-based long-short portfolio explains approximately 20% to 40% of industry momentum profits in the three countries. This explanatory power is concentrated around presidential (prime minister) elections. Overall, the results support the theory that investor underreaction to political information generates momentum. In other countries in which the pattern cannot explain momentum returns, I attempt to provide a new conjecture."]},{"key":"dc:format.mimetype","label":"Dc Format Mimetype","values":["application/pdf"]},{"key":"dc:title","label":"Title","values":["Shifts in Political Environment and Industry Momentum: Evidence from Global Stock Markets"]}]}],"canonical_facts":{"dc:contributor.committeemember":["Murfin, Justin"],"dc:creator":["Wang, Zhongyang"],"dc:date.accessioned":["2022-09-15T15:49:21Z"],"dc:date.available":["2022-09-15T15:49:21Z"],"dc:date.issued":["2022-05"],"dc:description":["55 pages"],"dc:description.abstract":["This paper aims to examine whether shifts in the political environment can explain industry momentum profits in global stock markets. In the U.S., Canada and Australia, I find that the politically consistent momentum strategy, which takes a long position in industries that are both winners and politically favored and a short position in industries that are both losers and politically unfavored, outperforms the standard momentum strategy. In contrast, the politically inconsistent momentum strategy, which has a long position in industries that are winners but politically unfavored and a short position in industries that are losers but politically favored does not generate significant profits. Further, I find that a political-sensitivity-based long-short portfolio explains approximately 20% to 40% of industry momentum profits in the three countries. This explanatory power is concentrated around presidential (prime minister) elections. Overall, the results support the theory that investor underreaction to political information generates momentum. In other countries in which the pattern cannot explain momentum returns, I attempt to provide a new conjecture."],"dc:format.mimetype":["application/pdf"],"dc:identifier.doi":["https://doi.org/10.7298/87zh-4j54"],"dc:identifier.other":["ProQuest Submission ID: 11470","ProQuest Publication ID: 29168431"],"dc:identifier.uri":["https://hdl.handle.net/1813/111657"],"dc:language.iso":["en"],"dc:subject":["behavioral finance","industry momentum","momentum profits","party change","political climate"],"dc:title":["Shifts in Political Environment and Industry Momentum: Evidence from Global Stock Markets"],"dc:type":["dissertation or thesis"],"thesis:degree_discipline":["Applied Economics and Management"],"thesis:degree_level":["Master of Science"],"thesis:degree_name":["M.S., Applied Economics and Management"],"thesis:institution_name":["Cornell University"]},"updated_at":"2026-07-24T01:49:00Z"}