Burdekin, Richard C. K.
[Verfasser:in]
;
Hughson, Eric N.
[Sonstige Person, Familie und Körperschaft];
Gu, Jinlin
[Sonstige Person, Familie und Körperschaft]
Anmerkungen:
In: Applied Economics Letters, Forthcoming
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments 2017 erstellt
Beschreibung:
Global equity markets fell by nearly 5% overall on June 24, 2016 following news of the Brexit referendum result. Although nearly all EU stock market indices experienced additional significantly negative abnormal returns, especially poor performance was registered by the debt-ridden PIIGS group (Portugal, Ireland, Italy, Greece, and Spain). In this paper we identify a systematic tendency for more severe stock market responses to be concentrated amongst countries with higher debt to GDP ratios. This effect endures even after controlling for the degree of openness, EU membership and for being part of the PIIGS group