Boise State University

09/30/2025 | News release | Distributed by Public on 09/30/2025 15:00

Baig published in International Review of Finance

Ahmed Baig

Ahmed Baig, associate professor in the Department of Finance, and co-authors, had their paper "The Effects of Country Governance Quality on Stability of Equity Markets" published in The International Review of Finance. This paper finds a direct link between the quality of a country's governance and the stability of its stock market.

Using a large global dataset of companies traded in the U.S., the study shows that markets in countries with high-quality governance-such as effective institutions and lower corruption-experience significantly less stock market volatility.

To confirm this link, researchers analyzed Brazilian stocks during a major corruption scandal and found clear evidence that weaker governance directly fueled instability. The study highlights how good governance is not only vital for politics and society, but also for keeping financial markets steady.

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Boise State University published this content on September 30, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on September 30, 2025 at 21:01 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]