The Influence of General Strikes on Stock Market Behavior
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.
open access article
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
Research Institute : Finance and Banking Research Group (FiBRe)
Peer Reviewed : Yes