The Influence of General Strikes against Government on Stock Market Behavior

47 Pages Posted: 28 Oct 2016 Last revised: 12 Mar 2019

Date Written: October 28, 2016


Using a sample of 76 countries, this paper examines the impact of major strikes against government and its policies on stock market behavior. An occurrence of a general strike is detrimental to the value of equities, as documented by the ceteris paribus 6.11% fall in dollar-denominated stock market indices of the affected countries. This event is also accompanied by a statistically significant increase in risk, as measured by the standard deviation of returns and Value-at-Risk metrics. Taken together, these results imply that general strikes have serious ramifications for stock market investors.

Keywords: general strikes, stock prices, political effects

JEL Classification: G12, J52

Suggested Citation

Wisniewski, Tomasz Piotr and Lambe, Brendan John and Dias, Alexandra, The Influence of General Strikes against Government on Stock Market Behavior (October 28, 2016). Available at SSRN: or

Tomasz Piotr Wisniewski (Contact Author)

Open University, UK ( email )

Walton Hall
Milton Keynes, Buckinghamshire MK7 6AA
United Kingdom

Brendan John Lambe

University of Leicester ( email )

University Road
Leicester, LE1 7RH
United Kingdom
01162297420 (Phone)

Alexandra Dias

University of York ( email )

Freboys Lane
York, North Yorkshire YO10 5DD
United Kingdom

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