Work

Brexit and Its Impact on EU Financial Markets

Year: 2026

Type: article

Abstract: ABSTRACT We investigate the impact of Brexit on volatility spillovers across the EU countries. We introduce a Brexit intensity measure that assigns an intensity score reflective of the financial markets' reaction to the events that occurred as Brexit negotiations began to unfold. We find that Brexit‐related events have contributed towards increased volatility transmission within the EU. Country‐wise investigations show that throughout the Brexit timespan, France is the key volatility transmitter within the Union. By contrast, the UK is evidenced as a volatility transmitter during the early stages of Brexit negotiations, under Theresa May as the prime minister. Out of the smallest stock markets of the block, Ireland, Portugal and Spain have been among those particularly affected.

Source: International Journal of Finance & Economics

DOI: 10.1002/ijfe.70149

Authors: Marwan Izzeldin, Gulnur Muradoglu, Vasileios Pappas, Sheeja Sivaprasad

Institutions: Lancaster University, University of Illinois at Springfield, University of Surrey, University of Westminster

Language: English

Topic: Financial Risk and Volatility Modeling

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: hybrid

Estimated APC paid: $3,400

OpenAlex ID: W7124288540

FWCI: 7.019

Cites: 39

Cited by: 1

Related to: