Macroeconomics Seminar Series. "Adapting to Brexit: How British Firms Establish Footholds in the EU" (Joint Work with M. Crowley, M. Domenech and E. Faraglia)
Published: 20 February 2025
13 March 2025. Professor Chryssi Giannitsarou, University of Cambridge
Professor Chryssi Giannitsarou, University of Cambridge
"Adapting to Brexit: How British Firms Establish Footholds in the EU" (Joint Work with M. Crowley, M. Domenech and E. Faraglia)
Thursday, 13 March 2025. 15:00-16:30
Room 355, Gilbert Scott Building
Abstract
The British public's decision in June 2016 to leave the European Union (EU) sparked a period of heightened uncertainty regarding future relations between the UK and the EU. We investigate how British firms' corporate structures responded to this uncertain environment through the establishment of new subsidiaries in the EU. Our difference-in-differences analysis reveals that British parent firms establishing a first subsidiary after the referendum vote were different from British firms that established subsidiaries before the referendum, as well as EU firms establishing subsidiaries during the same period. After the referendum vote, British parents establishing their first subsidiary in the European Union had relatively lower growth in turnover, profits, cash flow, and assets in both the year preceding and the year of subsidiary establishment. These findings indicate that the strategic responses of British firms to Brexit resulted in a substantial compositional change in the types of British firms adopting multinational structures.
Bio
Chryssi Giannitsarou is a Professor of Macroeconomics and Finance at the University of Cambridge. With postgraduate degrees from London School of Economics and London Business School, her research spans a wide range of topics, such as financial decision-making, macroeconomic dynamics, economic networks, international finance, and has been published in many leading economics journals. She is a fellow of King’s College Cambridge and a research fellow of the Centre for Economic Policy Research.
For further information, please contact business-seminar-series@glasgow.ac.uk.
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First published: 20 February 2025