London Business School
26 Sussex plc, Regent's Park
NW1 4SA London
NBER Working Papers and Publications
|November 2014||The Power of the Street: Evidence from Egypt's Arab Spring|
with Daron Acemoglu, Tarek A. Hassan: w20665
During Egypt's Arab Spring, unprecedented popular mobilization and protests brought down Hosni Mubarak's government and ushered in an era of competition between three groups: elites associated with Mubarak's National Democratic Party (NDP), the military, and the Islamist Muslim Brotherhood. Street protests continued to play an important role during this power struggle. We show that these protests are associated with differential stock market returns for firms connected to the three groups. Using daily variation in the number of protesters, we document that more intense protests in Tahrir Square are associated with lower stock market valuations for firms connected to the group currently in power relative to non-connected firms, but have no impact on the relative valuations of firms connecte...