A literature review on political uncertainty and stock market behaviour

Abstract

The political event-related literature has been growing over the past decades, generating a continuous stream of research and journal publications. This article aims to systematically review the impact of the political events on stock market literature to outline its current state, trends, gaps, and discrepancies. To this end, 111 political events-related articles published in 68 finance, economic and political journals were extracted. The retrieved pieces of literature were thoroughly examined using a comprehensive classification framework that emphasized broadly conceptual, theoretical, and methodological aspects. Finally, building on this literature, the paper proposes an extensive research agenda to help move the political event literature forward.