The Influence of General Strikes on Stock Market Behavior

Date

2018-08-30

Advisors

Journal Title

Journal ISSN

ISSN

Volume Title

Publisher

SSRN

Type

Working Paper

Peer reviewed

Yes

Abstract

Using a sample of 76 countries, this paper examines the impact of major strikes against government and its policies on stock market behavior. An occurrence of a general strike is detrimental to the value of equities, as documented by the ceteris paribus 5.77% fall in dollar-denominated stock market indices of the affected countries. This event is also accompanied by a statistically significant increase in risk, as measured by the standard deviation of returns and Value-at-Risk metrics. Taken together, these results imply that general strikes have serious ramifications for stock market investors.

Description

open access article

Keywords

General strikes, stock prices, political effects

Citation

Wisniewski, T., Lambe, B.J. and Dias, A. (2018) The Influence of General Strikes on Stock Market Behavior. Available at SSRN: https://ssrn.com/abstract=2860688

Rights

Research Institute

Finance and Banking Research Group (FiBRe)