Researchers at the University of Bristol used stock market data for 297 UK firms and bookmakers’ Brexit odds during the referendum campaign to estimate the financial impact.
They say their study is the first of its kind showing the direct impact of political uncertainty related to Brexit on all major British companies.
The findings, published in the Journal of Banking and Finance, showed that companies with a UK focus were most affected.
Multinational companies proved to be more resilient as they operate across a diverse set of countries, which provides more stability, according to the study.
In the immediate aftermath of the referendum, prices of companies in the bottom quarter of the internationalisation ranking dropped by 21 per cent on average while those in the top quarter fell by 8 per cent, it found.
Of the companies analysed, those in the financial sector and in consumer-orientated sectors such as housebuilders, retail, travel and leisure firms were hardest hit.
Larger and the fastest-growing firms were more affected by Brexit, though there was some evidence that more profitable companies felt less of an impact on the stock price, the researchers said. [...]
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