Fascinating new paper by Hassan, @StephanHollan, @L_van_Lent & Tahoun looks at this question by analysing the transcripts of conference calls firms hold when announcing their earnings. drive.google.com/file/d/119I4ka… 1/
![Image](https://pbs.twimg.com/media/EQCfPipVAAAuMJZ.jpg)
"We find that firms mostly expect Brexit headwinds from regulatory divergence, reduced labor mobility, limited trade access and heightened uncertainty."
"we find little or no discussion about the major economic benefits touted by the Leave campaign"
Yes and no.
Firms facing higher Risk have reduced hiring and investment consistent with evidence from the Bank of England's Decision Makers Panel that Brexit uncertainty has reduced investment.
This means markets expect these firms to perform worse in future because of Brexit.
Conclusion: "to this point, the Brexit vote has mainly acted as an uncertainty shock" End/