Political Risk and Stock Market Development

  • Costas Siriopoulos
  • Dimitrios Asteriou
Part of the Applied Optimization book series (APOP, volume 19)


This article examines empirically the relationship between political instability and stock market development in a small capital market (the Greek capital market). We measure socio-political instability by constructing an index which captures the occurrence of various phenomena of political violence. The empirical results indicate the existence of a strong negative relationship between uncertain socio-political conditions and the general index of the Athens Stock Exchange.


Political risk Political instability Stock markets development Small capital markets 


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Copyright information

© Springer Science+Business Media Dordrecht 1998

Authors and Affiliations

  • Costas Siriopoulos
    • 1
  • Dimitrios Asteriou
    • 2
  1. 1.Department of EconomicsUniversity of MacedoniaThessalonikiGreece
  2. 2.Department of EconomicsCity UniversityLondonUK

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