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 6.11% 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.
| Original language | English |
|---|---|
| Pages (from-to) | 72-99 |
| Number of pages | 28 |
| Journal | Scottish Journal of Political Economy |
| Volume | 67 |
| Issue number | 1 |
| Early online date | 4 Jun 2019 |
| DOIs | |
| Publication status | Published - Feb 2020 |
Bibliographical note
© 2019 Scottish Economic Society. This is an author-produced version of the published paper. Uploaded in accordance with the publisher’s self-archiving policy. Further copying may not be permitted; contact the publisher for details.Keywords
- General strikes
- stock prices
- political effects
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