The Influence of General Strikes against Government on Stock Market Behavior |
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Authors: | Tomasz Piotr Wisniewski Brendan John Lambe Alexandra Dias |
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Affiliation: | 1. The Open University;2. De Montfort University, Alfaisal University;3. University of York |
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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. |
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