The Economic Effects of Brexit: Evidence from the Stock Market

Holger Breinlich Y · Elsa Leromain · Dennis Novy · Thomas G. Sampson · Usman Ahmed

88 citations0/0 files storedFiscal Studies

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Market Dynamics and Volatility Financial Markets and Investment Strategies COVID-19 Pandemic Impacts

Abstract

Abstract We study stock market reactions to the Brexit referendum on 23 June 2016 in order to assess investors’ expectations about the effects of leaving the European Union on the UK economy. Our results suggest that initial stock price movements were driven by fears of a cyclical downturn and by the sterling depreciation following the referendum. We also find tentative evidence that market reactions to two subsequent speeches by Theresa May (her Conservative party conference and Lancaster House speeches) were more closely correlated with potential changes to tariffs and non‐tariff barriers on UK–EU trade, indicating that investors may have updated their expectations in light of the possibility of a ‘hard Brexit’. We do not find a correlation between the share of EU immigrants in different industries and stock market returns.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 88 citations exist upstream.

References

1997The Econometrics of Financial Markets 2001New Evidence and Perspectives on Mergers 1998The Event Study Methodology Since 1969 2017The costs and benefits of leaving the EU: trade effects 2013How does the stock market react to the announcement of green policies?2016The sectoral effects of Brexit on the British economy: early evidence from the reaction of the stock market 2018The heterogeneous impact of Brexit: Early indications from the FTSE 2007All Events Induce Variance: Analyzing Abnormal Returns When Effects Vary across Firms

Cited by

2022Carbon credit futures as an emerging asset: Hedging, diversification and downside risks

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.