Abstract
This study utilizes a rolling window Granger test to investigate how global geopolitical tension affects returns in China’s defence sector. The results reveal a highly dynamic and nonlinear relationship between geopolitical risk and the industry’s stock market performance. Notably, our findings suggest that geopolitical risk has recently become a significant predictor of the market return of the defence sector. These results contribute to the existing literature on the impact of geopolitical uncertainties on China’s financial markets and offer new insights into the relationship between international security and the stock market performance of defence contractors. We discuss the implications of this research at the end.
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© 2023 Walter de Gruyter GmbH, Berlin/Boston
Artikel in diesem Heft
- Frontmatter
- Research Articles
- Do Remittances and Terrorism Impact Each Other?
- Burden Sharing During MINUSMA, Fair Enough? A Preliminary Descriptive Account
- Population, Institutions, and Violent Conflicts – How Important is Population Pressure in Violent Resource-Based Conflicts?
- Letters and Proceedings
- Does Geopolitical Risk Influence China’s Defence Sector Returns?
Artikel in diesem Heft
- Frontmatter
- Research Articles
- Do Remittances and Terrorism Impact Each Other?
- Burden Sharing During MINUSMA, Fair Enough? A Preliminary Descriptive Account
- Population, Institutions, and Violent Conflicts – How Important is Population Pressure in Violent Resource-Based Conflicts?
- Letters and Proceedings
- Does Geopolitical Risk Influence China’s Defence Sector Returns?