Date of Award
Master of Science (MS)
Economics and Finance
Using a collection of American Depositary Receipts (ADRs), this study examines the stock-price reaction of European, European Union, and British firms to the Brexit Referendum on June 23, 2016. Results show that non-European firms experienced greater returns than the market after the Brexit referendum. European, European Union, and British firms all experienced negative returns compared to the average market return. While at first glance British firms appeared to experience even greater negative returns as compared to firms in the European Union, overall there was no statistically significant difference between returns for firms in the European Union and firms in the United Kingdom. These results show that in the initial aftermath of the Brexit Referendum, investors believed that the non-European world would benefit from a weaker European Union, and that both the European Union and the United Kingdom were likely to adversely effected by the referendum.
Bisbee, Matthew Clint, "Brexit and the Effects on European ADRs vs British ADRs" (2020). All Graduate Plan B and other Reports. 1483.
Copyright for this work is retained by the student. If you have any questions regarding the inclusion of this work in the Digital Commons, please email us at .