摘要：AbstractBased on the Efficient Market Hypothesis, this paper investigates market reactions to short-run political events in the companies connected to bi-power business–political elite of the state of Sarawak in Malaysia. We find that the under-reaction market behaviour of investors existed in politically connected firms upon the announcement of extraordinary political events. By contrast, evidence of overreaction behaviour was detected upon the holding of the Balingan general election. This study suggests that in short run political events, investors are unable to predict abnormal returns in politically connected companies upon the announcement of surprising political news. This signals an inefficient market.
关键词：stock market reaction;political connection;short-run political event
