Economy | Brexit result reduced value of UK companies by 16%

The outcome of the Brexit referendum has reduced the value of UK companies by 16%, according to a new analysis from the University of Bristol.

The Independent reports that the researchers reviewed stock market data for 297 UK firms and bookmakers’ Brexit odds during the referendum campaign to estimate the financial impact.

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They found that, in the immediate aftermath of the referendum, prices of companies in the bottom quarter of the internationalisation ranking dropped by 21% on average while those in the top quarter fell by eight per cent.

Dr Piotr Korczak, Reader in Finance at the School of Economics, Finance and Management at the University of Bristol, led the research. He explained that the referendum result started a period of unprecedented political uncertainty. “It is difficult for companies to plan, investment is put on hold, and consumers cut spending,” he said.