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Growth … What growth?

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  • Tosun, Onur Kemal
  • Lucey, Brian

Abstract

This study focuses on economic turmoil in the UK between 06September and 19October2022 consequent on a “mini budget” announced by the then Chancellor. Contrary to pre-announcement growth expectations, UK firms lost about 0.30% in daily excess returns and £0.87 million in market value. UK's “Moron Risk Premium” increased by 0.48%. Analyses with Google Search Volume Index support this devastating effect on companies. Durables, construction, manufacturing, and wholesale & retail sectors were less affected by this economic turbulence. We concluded that the announced low-tax economic policy does not always convince markets of future growth, particularly during high inflation and political instability.

Suggested Citation

  • Tosun, Onur Kemal & Lucey, Brian, 2023. "Growth … What growth?," Finance Research Letters, Elsevier, vol. 52(C).
    • Handle: RePEc:eee:finlet:v:52:y:2023:i:c:s154461232200770x
    DOI: 10.1016/j.frl.2022.103594
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    References listed on IDEAS

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    More about this item

    Keywords

    Economic turmoil; Low-tax policy; Firm value; Growth;
    All these keywords.

    JEL classification:

    • E71 - Macroeconomics and Monetary Economics - - Macro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on the Macro Economy
    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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