The distant echo of Brexit: Did exporters suffer the most?

- We study investors' reactions to the Brexit on the Warsaw Stock Exchange.
- The investors' reactions were mostly uniform.
- Surprisingly, the exporters did not suffer the most.
- Financial fundamentals affect investors' reactions only modestly.

This study investigates price adjustments on the Warsaw Stock Exchange after the referendum on Brexit. Contrary to our expectations, we found that investors' reactions were uniform with regard to the firms' dependence on European markets or reliance on export activities in general. Other fundamental factors only moderately influenced investors' decisions.