ATTENTION TO THE ELECTION-ECONOMICS-POLITICS (EEP) NEXUS IN THE INDIAN STOCK MARKETS
ATTENTION TO THE ELECTION-ECONOMICS-POLITICS (EEP) NEXUS IN THE INDIAN STOCK MARKETS

Summary/Abstract: Do investors pay attention to the election-economics-politics (EEP) nexus in the stock markets? In examining this research problem during the 17th Lok Sabha Election in India, this study explores the cointegrating relationships of its’ stock markets’ returns and realised trade volumes with investors’ selective attention to keywords in Google searches. The article uses the autoregressive distributed lag (ARDL) model. It reveals ingenious findings that investors’ attention dynamics at EEP nexus cointegrate either with the stock-markets’ returns or realised trade-volumes. It also identifies investors’ attention myopia, where the cointegration twists once the nexus pulls of its election or economic factor/s.

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