The global impact of Brexit uncertainty
Date
2024-02
Version
Published version
OA Version
Citation
T.A. HASSAN, S. HOLLANDER, L.V. LENT, A. TAHOUN. 2024. "The Global Impact of Brexit Uncertainty" Journal of Finance, Volume 79, Issue 1, pp.413-458. https://doi.org/10.1111/jofi.13293
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.
Description
License
© 2023 The Authors. The Journal of Finance published by Wiley Periodicals LLC on behalf of American Finance Association. This is an open access article under the terms of the Creative Commons Attribution-NonCommercial-NoDerivs License, which permits use and distribution in any medium, provided the original work is properly cited, the use is non-commercial and no modifications or adaptations are made.