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Arising borders and the value of logistic companies: Evidence from the Brexit referendum in Great Britain

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  • Tielmann, Artur
  • Schiereck, Dirk

Abstract

The Brexit referendum may result in new border controls and a separation of Great Britain from the EU and Continental Europe. These consequences will impede the import and export of goods and can therefore have a strong effect on the valuation of logistic companies. We employ event study methodology and regression analysis, examining 107 logistic companies from continental EU countries and Great Britain. While the results indicate an overall negative value effect, UK based companies have a significantly poorer performance than logistic companies from Continental Europe. Companies that focus on the road transport as well as diversified firms are less affected.

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  • Tielmann, Artur & Schiereck, Dirk, 2017. "Arising borders and the value of logistic companies: Evidence from the Brexit referendum in Great Britain," Finance Research Letters, Elsevier, vol. 20(C), pages 22-28.
    • Handle: RePEc:eee:finlet:v:20:y:2017:i:c:p:22-28
    DOI: 10.1016/j.frl.2016.08.006
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    Cited by:

    1. Doriana Cucinelli & Vincenzo Farina & Paola Schwizer & Maria Gaia Soana, 2021. "Better the Devil You Know: The Impact of Brexit Political Uncertainty on European Financial Markets," International Journal of Business and Management, Canadian Center of Science and Education, vol. 15(6), pages 1-62, July.
    2. Júlio Lobão & Sílvia Santos, 2019. "Stock Market Reaction To Brexit Announcements: Evidence From A Natural Experiment," Global Economy Journal (GEJ), World Scientific Publishing Co. Pte. Ltd., vol. 19(03), pages 1-17, September.
    3. 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.
    4. Klöckner, Maximilian & Schmidt, Christoph G. & Wagner, Stephan M. & Swink, Morgan, 2023. "Firms’ responses to the COVID-19 pandemic," Journal of Business Research, Elsevier, vol. 158(C).
    5. Dao, Thong M. & McGroarty, Frank & Urquhart, Andrew, 2019. "The Brexit vote and currency markets," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 59(C), pages 153-164.
    6. Kevin B. Hendricks & Brian W. Jacobs & Vinod R. Singhal, 2020. "Stock Market Reaction to Supply Chain Disruptions from the 2011 Great East Japan Earthquake," Manufacturing & Service Operations Management, INFORMS, vol. 22(4), pages 683-699, July.
    7. Kiesel, Florian & Ries, Jörg M. & Tielmann, Artur, 2017. "Reprint of “The impact of mergers and acquisitions on shareholders' wealth in the logistics service industry”," International Journal of Production Economics, Elsevier, vol. 194(C), pages 261-277.
    8. Matoshi, Ruzhdi & Mulaj, Isa, 2020. "Resurgence of transition economics: Brexit as an expected example, experience and lesson," MPRA Paper 107852, University Library of Munich, Germany.
    9. Ahmad Bash, 2020. "International Evidence of COVID-19 and Stock Market Returns: An Event Study Analysis," International Journal of Economics and Financial Issues, Econjournals, vol. 10(4), pages 34-38.
    10. Doriana Cucinelli & Paola Schwizer & Maria Gaia Soana, 2023. "Brexit and the Banking Sector: The Stock Market Reaction of UK and European Banks," International Journal of Business and Management, Canadian Center of Science and Education, vol. 16(4), pages 1-27, February.
    11. Kiesel, Florian & Ries, Jörg M. & Tielmann, Artur, 2017. "The impact of mergers and acquisitions on shareholders' wealth in the logistics service industry," International Journal of Production Economics, Elsevier, vol. 193(C), pages 781-797.
    12. Sylvia Gottschalk, 2023. "From Black Wednesday to Brexit: Macroeconomic shocks and correlations of equity returns in France, Germany, Italy, Spain, and the United Kingdom," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(3), pages 2843-2873, July.
    13. Andreas Seebeck & Julia Vetter, 2022. "Not Just a Gender Numbers Game: How Board Gender Diversity Affects Corporate Risk Disclosure," Journal of Business Ethics, Springer, vol. 177(2), pages 395-420, May.
    14. Michael Filletti, 2020. "Investigating the influence Brexit had on Financial Markets, in particular the GBP/EUR exchange rate," Papers 2003.05895, arXiv.org.

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    More about this item

    Keywords

    Brexit; Political risk; Logistics industry; Event study;
    All these keywords.

    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

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