The Global Impact of Brexit Uncertainty

2023/11/02 by Tarek A. Hassan, TAREK A. HASSAN, STEPHAN HOLLANDER +5 · 2 citations
Economics, Econometrics and Finance · Business, Management and Accounting · Energy · #Market Dynamics and Volatility #State Capitalism and Financial Governance #Global Energy Security and Policy

paper · pdf · doi:10.1111/jofi.13293

Abstract

ABSTRACT We propose a text‐based method for measuring the cross‐border propagation of large shocks at the firm level. We apply this method to estimate the expected costs, benefits, and risks of Brexit and find widespread reverberations in listed firms in 81 countries. International (i.e., non‐U.K.) firms most exposed to Brexit uncertainty (the second moment) lost significant market value and reduced hiring and investment. International firms also overwhelmingly expected negative first‐moment impacts from the U.K.'s decision to leave the European Union (EU), particularly related to regulation, asset prices, and labor market impacts of Brexit.

Citations

• Text as Data
• Does Silence Speak? An Empirical Analysis of Disclosure Choices During Conference Calls

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