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Brexit concerns, UK and European equities: A lose-lose scenario?

Author

Listed:
  • Jamal Bouoiyour

    (University of Pau)

  • Refk Selmi

    (Tunis Business School)

Abstract

Nowadays, the UK withdrawal from the European Union –also known as “Brexit†– and the uncertainty associated with it receive far-reaching attention. This article seeks to shed some light on the costs of “Brexit†by delving into the impacts of the attention given to this event (via Google Trends and Twitter search) on UK, German and French equities. By measuring the strength of “Brexit†effect as alternative to tail distributions, our results suggest that “Brexit†asymmetrically harm the investigated stock markets; Germany suffered most, followed by France and UK.

Suggested Citation

  • Jamal Bouoiyour & Refk Selmi, 2016. "Brexit concerns, UK and European equities: A lose-lose scenario?," Economics Bulletin, AccessEcon, vol. 36(3), pages 1686-1693.
    • Handle: RePEc:ebl:ecbull:eb-16-00480
    as

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    References listed on IDEAS

    as
    1. Swati Dhingra & Gianmarco I. P. Ottaviano & Thomas Sampson, 2015. "Should We Stay or Should We Go? The economic consequences of leaving the EU," CEP Election Analysis Papers 022, Centre for Economic Performance, LSE.
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    Citations

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    Cited by:

    1. Jamal Bouoiyour & Refk Selmi, 2019. "Should Bitcoin be used to help devastated economies? Evidence from Greece," Economics Bulletin, AccessEcon, vol. 39(1), pages 513-520.
    2. Jamal Bouoiyour, Refk Selmi, 2018. "Are UK industries resilient in dealing with uncertainty? The case of Brexit," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 15(2), pages 277-292, December.
    3. Jamal Bouoiyour, Refk Selmi, 2019. "Brexit and CDS spillovers across UK and Europe," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 16(1), pages 105-124, June.
    4. Jamal Bouoiyour & Refk Selmi, 2017. "Political elections and uncertainty -Are BRICS markets equally exposed to Trump's agenda?," Papers 1701.02182, arXiv.org.
    5. Jamal Bouoiyour & Refk Selmi, 2018. "Brexit and CDS spillovers across UK and Europe," Working Papers hal-01736525, HAL.
    6. Jamal Bouoiyour, Refk Selmi, 2018. "Are UK industries resilient in dealing with uncertainty? The case of Brexit," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 15(2), pages 277-292, December.

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    More about this item

    Keywords

    “Brexit†; uncertainty; equities; UK; Europe.;
    All these keywords.

    JEL classification:

    • F3 - International Economics - - International Finance
    • G1 - Financial Economics - - General Financial Markets

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