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Political shocks and the reaction of the Tunisian financial market

Political shocks and the reaction of the Tunisian financial market

Paperback

Management

ISBN10: 6209728979
ISBN13: 9786209728976
Publisher: Our Knowledge Publishing
Published: Mar 11 2026
Pages: 80
Weight: 0.26
Height: 0.19 Width: 6.00 Depth: 9.00
Language: English
The theory of efficient financial markets, based on the assumption that investors are rational, is the foundation of modern finance. However, the contributions of Kahneman and Tversky (1979) challenged this vision by demonstrating the influence of cognitive and emotional biases on financial decisions, paving the way for behavioral finance. This research examines the relationship between investor sentiment, returns and volatility in the Tunisian stock market, against a backdrop of political instability marked by the 2010 revolution. The study aims to analyze the transmission of volatility shocks between these variables before and after this period, in order to better understand the impact of psychological and political factors on the dynamics of the Tunisian financial market.

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