The Influence of General Strikes against Government on Stock Market Behavior

Wisniewski, Tomasz Piotr; Lambe, Brendan John and Dias, Alexandra (2020). The Influence of General Strikes against Government on Stock Market Behavior. Scottish Journal of Political Economy, 67(1) pp. 72–99.

DOI: https://doi.org/10.1111/sjpe.12224

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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