QUANTIFYING THE EFFECTS OF BREXIT VIA THE APPLICATION OF EVENT STUDY METHODOLOGY

The effects of the EU-UK Withdrawal Agreement, reached on 17 October 2019, on the stocks listed on the London Stock Exchange are the subject of the paper. The classic event study methodology was used to quantify impact. This research is based on a sample of 138 stocks, divided into five sample secti...

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Bibliographic Details
Published inTeme Vol. XLVII; no. 2; pp. 267 - 279
Main Authors Tomi, Nenad, Todorovi, Violeta, S. Vasi, Aleksandra
Format Journal Article
LanguageEnglish
Published University of Ni 26.09.2023
Subjects
Politics / Political Sciences
Brexit
parametric tests
nonparametric tests
abnormal return
event study
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Summary:The effects of the EU-UK Withdrawal Agreement, reached on 17 October 2019, on the stocks listed on the London Stock Exchange are the subject of the paper. The classic event study methodology was used to quantify impact. This research is based on a sample of 138 stocks, divided into five sample sections according to the companys business sector. In contrast to the research conducted after the referendum, which showed a clear negative impact on almost all of the observed sectors, the research conducted in this paper does not provide a unique conclusion. Three sectors recorded obvious positive effects, namely the financial sector, the food industry, and the medical sector, while no sector suffered obvious negative effects. The remaining two sectors did not provide data to aid in reaching a clear conclusion, as there were positive, negative and statistically insignificant results across different tests.
ISSN:0353-7919
1820-7804
DOI:10.22190/TEME210204018T