Real and Financial Sector Returns, the IMF, and the Asian Crisis

34 Pages Posted: 4 Apr 2009

See all articles by Ali M. Kutan

Ali M. Kutan

Southern Illinois University at Edwardsville

Yaz Gulnur Muradoglu

Queen Mary University of London; City University London - Sir John Cass Business School

Date Written: April 4, 2009

Abstract

This paper examines the impact of International Monetary Fund (IMF) announcements programs on different sectors of the economy. Previous studies approach this issue from the perspective of financial sector and/or composite index returns only; there is limited evidence on the impact of IMF actions on stock prices in non-financial sectors. This paper provides comprehensive evidence on the impact of IMF related announcements in different sectors of the economy during the Asian crisis. The results indicate that IMF actions affect sector returns asymmetrically, suggesting that investors have different expectations regarding the restructuring costs associated with IMF-imposed reforms in certain sectors. More important, the results that indicate the net wealth effects of IMF actions in private financial markets can be best understood by providing evidence from both financial and non-financial sectors.

Keywords: crisis, IMF, stock returns

Suggested Citation

Kutan, Ali M. and Muradoglu, Yaz Gulnur, Real and Financial Sector Returns, the IMF, and the Asian Crisis (April 4, 2009). Available at SSRN: https://ssrn.com/abstract=1373026 or http://dx.doi.org/10.2139/ssrn.1373026

Ali M. Kutan

Southern Illinois University at Edwardsville ( email )

Department of Economics and Finance AH-3141
Edwardsville, IL 62026-1102
United States
618-650-3473 (Phone)
618-650-3047 (Fax)

HOME PAGE: http://https://ideas.repec.org/e/pku30.html

Yaz Gulnur Muradoglu (Contact Author)

Queen Mary University of London ( email )

Francis Bancroft Building
Mile End Road
London, E1 4NS
United Kingdom

City University London - Sir John Cass Business School ( email )

106 Bunhill Row
London, EC1Y 8TZ
United Kingdom
+44 20 7040 0124 (Phone)
+44 20 7040 8853 (Fax)

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