UK'S Referendum: Signaling Effect Dr. Krishnaveni P., Prabakaran V., Kumar K. Mohan Assistant Professor, Department of Management Studies, SNS College of Technology, Saravanampatti, Coimbatore, India Online published on 14 October, 2016. Abstract The European Union is the world's largest ‘Single Market’ area holding 16% market share with respect to total import and export business. The policies and regulations of EU are common for its member countries. United Kingdom is one of the member countries of EU, facing difficulties with respect to the policies and regulations of EU. A public voting to know the opinion of general public on continuing the membership with EU was conducted on June 23, 2016. The result of the referendum was shaking the world market heavily in different ways. The stock markets and FOREX markets of different countries trading with EU were influenced differently with respect to the announcement. However the significant impact with respect to the announcement was unknown. In view of this, the research is carried out considering currencies of five countries namely, United States of America, Japan, Canada, Australia and United Kingdom. In addition to foreign currencies, Special Drawing Rights of European Union, National Stock Exchange (NSE NIFTY) and Gold Rate in India were also considered. Event window of 10 days includes 5 days prior to announcement and 5 days after announcement was considered for analysis. The result of this study reveals and concludes that, UK's referendum has significant positive impact on Britain and negative impact with respect to the EU trading partners. Top Keywords Brexit, European Union, Free Trade, Referendum, United Kingdom, India. Top |