01743cas a2200253 a 4500 AALejournalIMF005594 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451871746 1018-5941 BD-DhAAL BD-DhAAL Stratmann, Thomas. The Value of Institutions for Financial Markets : Evidence From Emerging Markets / Thomas Stratmann, Bernardin Akitoby. Washington, D.C. : International Monetary Fund, 2009. 1 online resource (23 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper investigates the value of political institutions for financial markets, using panel data from emerging market countries. We test the hypothesis that changes in political institutions, such as improvements in democratic rights and increased government accountability, have a direct effect on sovereign interest rate spreads. We find that financial markets value institutions over and above the economic and fiscal outcomes these institutions shape. Democracy and accountability generally lower sovereign spreads, political risk tends to increase them, and financial markets tend to view election years negatively. Mode of access: Internet Akitoby, Bernardin. IMF Working Papers; Working Paper ; No. 2009/027 Full text available on IMF http://elibrary.imf.org/view/journals/001/2009/027/001.2009.issue-027-en.xml IMF e-Library