Abstract
We examine the effects of the North Korea-U.S. summit and related events on the South Korean stock market over the period March 2018 to June 2018. Employing the event study methodology, we estimate...
Highlights
On 7 March 2018, Kim Jong Un, the North Korean leader, expressed his willingness to discuss the fate of his nuclear arsenal with the U.S This announcement eventually led to a historic meeting between the North Korean leader and the U.S President, Donald Trump
Abnormal return and cumulative abnormal return estimation Following Ramiah et al (2017) and Pham et al (2018b), we use the event study methodology to examine the effects of the North Korea-U.S summit on the stock market—these effects are expressed in terms of sectoral abnormal returns
The North Korea-U.S summit marked a historic political event that directly affected South Korea in many aspects since it has always striven for political stability in the Korean Peninsula, which would provide a better business environment for Korean firms
Summary
On 7 March 2018, Kim Jong Un, the North Korean leader, expressed his willingness to discuss the fate of his nuclear arsenal with the U.S This announcement eventually led to a historic meeting between the North Korean leader and the U.S President, Donald Trump. A successful meeting leading to the improvement of relations between North Korea and the U.S could be perceived as reducing tension in the Korean Peninsula. We are an international research group consisting of members from Vietnam, United Arab Emirates and Australia. Our research activities cover several topics including political issues, environmental issues, banking regulations, financial regulations, cryptocurrency, blockchain and FinTech. This research paper is a part of our research series in the examination the relationship between political issues around the world and the stock markets
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