Economic crisis or Brexit referendum? The impact of international and national events on the financial results of major corporations in the United Kingdom
DOI:
https://doi.org/10.24917/20845456.14.10Keywords:
brexit, London, corporations, economic crisisAbstract
In 2016 year, in the referendum, the British decided to leave the European Union.. The purpose of the study is to determine the changes in the financial performance of the largest corporations listed on the Forbes Global 2000 list, whose headquarters is located in Great Britain in the years 2006-2018. Approximately ¾ of them are located in London, therefore a closer analysis of the financial situation of companies in London was made. In the years 2015-2018, the number of HQs dropped slightly in both Great Britain and London. Also at this time, financial results of companies deteriorated, however, the decreases were smaller in London than in companies located in the rest of the country. The global economic slowdown of 2007-2008 had a much greater impact on the number of companies and their financial results with headquarters in the UK and London. Despite a significant decrease in the number of headquarters in 2006-2018, they are much richer and more powerful than before the economic slowdown. It seems that companies operating on a global scale are less dependent on European markets, while more sensitive to economic crises on a global scale. Perhaps the slight decrease in financial results after the referendum was caused by the lack of faith among corporate managers that Brexit would, however, which could hinder doing business with other European Union countries.
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