Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments November 16, 2016 erstellt
Description:
The equity market is more liquid under Democratic than Republican presidencies. This is apparent at the market level but is stronger in small, value stocks and in industries that are more sensitive to Democratic presidents. The effect is robust to different liquidity measures and time periods. It holds after controlling for the business cycle, macroeconomic variables, and the party with House of Representatives and Senate majorities. There is evidence that the liquidity effect is driven by a number of channels. Information asymmetry, volatility, and economic policy uncertainty are all lower during Democratic presidencies