Growth … What growth?

Onur Kemal Tosun and Brian Lucey

Finance Research Letters, 2023, vol. 52, issue C

Abstract: This study focuses on economic turmoil in the UK between 06September and 19October2022 consequent on a “mini budget” announced by the then Chancellor. Contrary to pre-announcement growth expectations, UK firms lost about 0.30% in daily excess returns and £0.87 million in market value. UK's “Moron Risk Premium” increased by 0.48%. Analyses with Google Search Volume Index support this devastating effect on companies. Durables, construction, manufacturing, and wholesale & retail sectors were less affected by this economic turbulence. We concluded that the announced low-tax economic policy does not always convince markets of future growth, particularly during high inflation and political instability.

Keywords: Economic turmoil; Low-tax policy; Firm value; Growth (search for similar items in EconPapers)
JEL-codes: E71 G20 J16 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:52:y:2023:i:c:s154461232200770x

DOI: 10.1016/j.frl.2022.103594

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