The Heterogeneous Impact of Brexit: Early Indications from the FTSE

Arbeitspapier

The UK’s decision to leave the EU is surrounded by several studies simulating its potential effects. Alternatively, we examine expectations embodied in stock returns using a two-part estimation process. While most firms’ prices fell, there was considerable heterogeneity in their relative changes. We show that this heterogeneity can be explained by the firm’s global value chain, with heavily European firms doing relatively worse. For firms with few imported intermediates, this was partially offset by a greater Sterling depreciation. These changes were primarily in the first two days and highly persistent. Understanding these movements gives a better understanding Brexit’s potential effects.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: CESifo Working Paper ; No. 6478

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Economic Integration ; Multinational Firms; International Business ; Information and Market Efficiency; Event Studies; Insider Trading
• Thema: global value chain ; event study ; Brexit

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Davies, Ronald B. ; Studnicka, Zuzanna
• Ereignis: Veröffentlichung
• (wer): Center for Economic Studies and ifo Institute (CESifo)
• (wo): Munich
• (wann): 2017

Weitere Informationen

• Handle: http://hdl.handle.net/10419/161917
• Letzte Aktualisierung: 10.03.2025, 11:43 MEZ