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

Artur Tielmann and Dirk Schiereck

Finance Research Letters, 2017, vol. 20, issue C, 22-28

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.

Keywords: Brexit; Political risk; Logistics industry; Event study (search for similar items in EconPapers)
JEL-codes: G10 G14 G15 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:20:y:2017:i:c:p:22-28

DOI: 10.1016/j.frl.2016.08.006

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