The effect of Brexit was hard on many economies. Emerging economies like India suffered hugely as many of its industries were greatly affected. Analysis of stock returns in such eventful scenarios helps us to take measures to mitigate the risks to a large extent with the help of forecasting for the safety of investors and businesses. The present event study analyzes the effect of Brexit on Indian stock market for pre-, during and post-Brexit periods. The data of Nifty 50 and seven sectoral indices returns were selected based on highly impacted sectors based on the correlation test done on all the sectors of Nifty. Autoregressive Conditional Heteroskedastic (ARCH) and Generalized Autoregressive Conditional Heteroskedastic (GARCH) models were used for the analysis, and the test results for the last four years (983 observations) indicate that there is significant impact of Brexit on Indian stock market.
Doctoral Thesis / Dissertation from the year 2023 in the subject Economics - Case Scenarios, grade: A, Saurashtra University (Department of Commerce), language: English, abstract: Afterward the British conclusion to leave, Europe’s path, even its purpose, has again develop a matter of choice. Brexit marks both a chief lawful variation for the UK and an important come separately for the EU. Britain is to grip a survey whereby the countries will agree whether or not the nation should be a portion of the correct to withdraw from the combination in contract with its individual legitimate necessities. This referendum was decided by Assembly when it approved the EU referendum (Public Opinion) act 2015. Afterward British choice to authorization, Europe route, even its purpose, has over develop a matter of choice. Brexit marks mutually a chief legitimate modification for the UK and an important separation for the EU. If only for this cause, the intercession of the terms of Brexit must take an extended-term view, outside the perhaps convoluted discussions that will start in the pending months. The present study is divided into five chapters. The first chapter of this study is the ‘Sample Profile’ of profile of selected sample is included. Researcher has selected the companies listed in the National Stock Exchange. The second chapter is the ‘Conceptual Background of BREXIT’. The third chapter of present research work is ‘Research Methodology’. This chapter presents various methods and techniques for the study and also shows that the 71-literature review of the present research work. In the fourth chapter of this research, ‘Data Analysis and Interpretation’. This chapter has showed the analysis of the data with the help of eight criteria for scientific conclusion. Researcher has calculated mean and stand deviation of Pre-Brexit and Post-Brexit condition, T-test samples for means has been used for the analysis of about the Automobile, IT, Jems-Jewellry, Pharmaceutical and Textiles companies Pre-Brexit and Post-Brexit condition. Finally, in the last chapter which is summary, findings and suggestions in which the findings of the study are mention and suggestion also provided on the basis of the findings. At last scope for future study is also mention which provides the path to do research in this particular area.
This study investigated the disposition effect under economic crisis (Brexit & GFC) and found that the stock markets of New Zealand, Australia and Mumbai did not show any significant disposition effect during the crisis period. The paper utilizes secondary data analysis to discuss the disposition effect and employs the method developed by Weber and Camerer (1998) and operationalized by Lin (2011).The finding of the study is consistent with the prediction that economic crisis does not necessarily show the disposition effect in these markets because as investors face major financial and economic crises, they may sell the losing stocks, since they are worried about larger loses in the future. The study results provide evidence that the investors may form a self-control mechanism (Lin, 2011) in order to prevent loss expansion during the crisis, and they will sell losing stocks once the losses exceed their limit of tolerance. The results also support the proposition that the presence of disposition effect is influenced by the market atmosphere and the “framing dependence” of investors, and when faced with high uncertainly like Brexit and GFC, investors sell losing stocks to prevent the spread of loss (Shefrin, 2000).The study supports the finding of Boebel and Taylor (2000) who conducted the study based on account information of brokers of individual investors in the New Zealand market and found no disposition effect.
Brexit will lead to fundamental changes in the trade relations between the UK and other nations. It would pose a challenge to countries such as India that use the UK as a gateway into the EU. The loss of the Single Market would also pose a challenge to the UK and the EU. It is too early to tell how the economic rivalry between the UK and the EU will play out in the long run. Developing economies that depended on the EU are bound to be affected by the rivalry. India is one of the countries that would be affected by the economic rivalry. The paper uses a review method to determine the impact of Brexit on Indian companies both at the local and international level. It undertakes a review of some of the largest companies in India. These companies operate in industries that are bound to be affected by Brexit. Therefore, an analysis of the impact of Brexit on these companies would depict the impact of Brexit on India as a case study. The results of the paper show that India would have a positive net effect from Brexit regardless of the fact that Brexit may lead to losses in trade between the UK and India. As India is the source of FDI of the UK, Brexit would result in making other countries in the EU attractive destinations of the FDI. To avoid losing out, the UK would try harder to ensure that more capital comes from India. The UK may do this by wooing Indian companies to ensure they invest in the UK It may provide tax breaks and other incentives. Nevertheless, it is vital for India to form stronger ties with the EU since the UK has been India’s gateway to the EU. This will provide India with a wider access to the EU market. Loss of subsidies for EU students to study in the UK would necessitate the country to look for an alternative source of students. India is one of the markets that the UK would explore in the aftermath of Brexit.
The book examines how the European Union, which in the past had tended to be seen by India as an undervalued partner, is now increasingly part of most conversations in fields like the economy, technology, standards, best practices, development, defence and security. The book shows that the renewed focus on Europe is the result of changing geopolitics, India’s own priorities, Europe’s growing relevance in the post-Brexit era, China’s expanding footprint in the continent, and the search for alternatives to the loss of the UK as the gateway to Europe. The uncertainty inherent in the Brexit process and with the UK ceasing/having ceased to be the traditional gateway to Europe, India has been compelled to revisit, re-examine and rethink its own policies towards Europe and search for alternatives to Britain.
Bachelor Thesis from the year 2018 in the subject Economics - International Economic Relations, grade: 2,0, Ruhr-University of Bochum (Wirschaftwissenschaft), language: English, abstract: The aim of this bachelor's thesis is to answer the question whether Brexit has negatively or positively affected the financial markets and why. The first two chapters will present the foundations for this thesis, namely more selective information about Brexit, how and why the vote was made, and also about the financial markets and their importance. Since the UK’s official exit from the EU will take place on March 29th, 2019, it is still unclear what the consequences of Brexit will be. Therefore, the main part will focus on the period before and after the referendum, tracking when Brexit's influence began and how it had evolved over the years. In addition, a brief forecast will be given as to how the UK’s withdrawal might eventually affect financial markets. The three financial markets that will be a subject in this thesis are: the foreign exchange market, the stock market and the government bond market. This bachelor’s thesis will be mainly focusing on the markets inside the UK, as the effects there are expected to be the most significant. Due to its ambiguity and topicality, Brexit is the subject of many studies and analysis. This work will be based mainly on two studies: "Kiel Institute for the World Economy"'s study by Raddant, and "Deutsches Institut für Wirtschaftsforschung"'s study by Caporale et al. Through descriptive literature research and analysis of scientific literature, newspaper articles and government reports, will be examined how and why Brexit has influenced the markets in one way or another. The argumentation will be supported by daily observations of the GBP/USD, GBP/EUR, FTSE 100, UK EPU and 10-Y UK Gilts in the period between January 2016 and June 2018, as well as by self-created graphics based on these observations.
This handbook fills a large gap in the current knowledge about the critical role of Africa in the changing global order. By connecting the past, present, and future in a continuum that shows the paradox of existence for over one billion people, the book underlines the centrality of the African continent to global knowledge production, the global economy, global security, and global creativity. Bringing together perspectives from top Africa scholars, it actively dispels myths of the continent as just a passive recipient of external influences, presenting instead an image of an active global agent that astutely projects soft power. Unlike previous handbooks, this book offers an eclectic mix of historical, contemporary, and interdisciplinary approaches that allow for a more holistic view of the many aspects of Africa’s relations with the world.
We investigate how corporate stock returns respond to geopolitical risk in the case of South Korea, which has experienced large and unpredictable geopolitical swings that originate from North Korea. To do so, a monthly index of geopolitical risk from North Korea (the GPRNK index) is constructed using automated keyword searches in South Korean media. The GPRNK index, designed to capture both upside and downside risk, corroborates that geopolitical risk sharply increases with the occurrence of nuclear tests, missile launches, or military confrontations, and decreases significantly around the times of summit meetings or multilateral talks. Using firm-level data, we find that heightened geopolitical risk reduces stock returns, and that the reductions in stock returns are greater especially for large firms, firms with a higher share of domestic investors, and for firms with a higher ratio of fixed assets to total assets. These results suggest that international portfolio diversification and investment irreversibility are important channels through which geopolitical risk affects stock returns.
This book collects selected articles addressing several currently debated issues in the field of international macroeconomics. They focus on the role of the central banks in the debate on how to come to terms with the long-term decline in productivity growth, insufficient aggregate demand, high economic uncertainty and growing inequalities following the global financial crisis. Central banks are of considerable importance in this debate since understanding the sluggishness of the recovery process as well as its implications for the natural interest rate are key to assessing output gaps and the monetary policy stance. The authors argue that a more dynamic domestic and external aggregate demand helps to raise the inflation rate, easing the constraint deriving from the zero lower bound and allowing monetary policy to depart from its current ultra-accommodative position. Beyond macroeconomic factors, the book also discusses a supportive financial environment as a precondition for the rebound of global economic activity, stressing that understanding capital flows is a prerequisite for economic-policy decisions.
