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Record W2944216101 · doi:10.33423/jabe.v20i8.208

Brexit Announcement: A Test of Market Efficiency

2018· article· en· W2944216101 on OpenAlexvenueno aff
Frank W. Bacon, Christina C. Cannon

Bibliographic record

VenueJournal of Applied Business and Economics · 2018
Typearticle
Languageen
FieldEconomics, Econometrics and Finance
TopicMarket Dynamics and Volatility
Canadian institutionsnot available
Fundersnot available
KeywordsBrexitEvent studyEconomicsStock marketEfficient-market hypothesisSample (material)Stock (firearms)Monetary economicsMarket efficiencyFinancial economicsEuropean unionValue (mathematics)International economics

Abstract

fetched live from OpenAlex

This study tests market efficiency theory by examining the effect of the Brexit announcement on the risk adjusted stock price returns of a sample of firms with strong economic ties to the EU using the standard event study methodology in the finance literature. How did the market react to UK leaving the European Union? We hypothesize that the June 24, 2016 Brexit announcement would negatively affect the risk adjusted returns of the sample of firms analyzed. The purpose of this study is to test market efficiency by analyzing the effect of Brexit’s announcement on the market. Specifically, we analyze the semi-strong market efficiency hypothesis predicting that stock price returns react so fast to all public information that no investor can earn an above normal return by acting on such news. Consistent with market efficiency and behavioral finance theories, we observe an overreaction to the bad news up to 14 days following the announcement followed by a return to equilibrium. Overall, results support semi-strong form market efficiency for the Brexit announcement. Implications of this study suggest that efforts to determine the “right” value of stock are useless since the market is semi-strong form efficient. The “right” price is themarket price that instantly impounds all available and relevant information.

Fetched live from OpenAlex and de-inverted. Abstracts are not stored in this database: the inverted indexes are 8.6 GB of the frame’s 9.3 GB of text, and the host has 13 GB free.

How this classification was reachedexpand

Full frame machine prediction

Teacher imitation

Not calibrated prevalence, not ground truth. Human validation pending. The Gemma side is a direct model label for every work in the frame, read from the title-only record. The Codex side is a classifier learned from the 10,348 direct Codex labels and calibrated to design-weighted sample rates; fields without enough sample support carry no Codex call. Candidate is the union of the two sides; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels.

metaresearch head score (Codex)0.009
metaresearch head score (Gemma)0.054
Version: metacan-v3-hybrid-931329e0061cValidation status: machine_predicted_unvalidated
Candidate categoriesnone
Consensus categoriesnone
DomainCandidate signal: none · Consensus signal: none
Study designCandidate signal: Observational · Consensus signal: Observational
GenreCandidate signal: Empirical · Consensus signal: Empirical
Teacher disagreement score0.009
Threshold uncertainty score0.045

Distilled classifier scores by category (both heads)

CategoryCodexGemma
Metaresearch0.0090.054
Meta-epidemiology (narrow)0.0000.000
Meta-epidemiology (broad)0.0010.001
Bibliometrics0.0010.001
Science and technology studies0.0000.001
Scholarly communication0.0020.002
Open science0.0010.001
Research integrity0.0010.001
Insufficient payload (model declined to judge)0.0040.000

Machine scores (provisional)

The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.

Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.

Opus teacher head0.014
GPT teacher head0.193
Teacher spread0.179 · how far apart the two teachers sit on this one work
Validation statusscore_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from it

Classification

machine, unvalidated

Machine predicted; a candidate call from one source (direct Gemma or distilled Codex), not a consensus.

The models applied no category: nothing in the taxonomy fit this work.
Study designObservational
Domainnot available
GenreEmpirical

How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".

Quick stats

Citations5
Published2018
Admission routes1
Has abstractyes

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