Cas leniency is like Great Train Robbers getting community service, but a lesson in realpolitik may concentrate minds
Here is a question you may not expect to find in a sports column. When a journalist is assassinated, do financial markets care? The answer, according to new research in the journal Applied Economics, is a resounding yes. And there is more in the detail. If the murdered journalist was an editor or worked in television, stock prices of companies with headquarters in that country declined on average by 2.18%. However, if they were tortured beforehand, they fell by 3%. And if they were killed by military officials, prices went down even further by 4.62%.
This awful set of statistics tells us that the greater the crime, the more international investors became queasy. As the authors noted, the killing of journalists acts as a signal to investors “about government instability and the breakdown of human rights, the rule of law, and the democratic governance”. But, on the other hand, they also found that “when the justice system functions, and there is a prosecution, the investor confidence goes up.”
Written by Sean Ingle
This news first appeared on https://www.theguardian.com/sport/blog/2020/dec/21/athletes-need-to-understand-why-russia-is-so-important-to-the-ioc under the title “Athletes need to understand why Russia is so important to the IOC | Sean Ingle”. Bolchha Nepal is not responsible or affiliated towards the opinion expressed in this news article.
