Fully-funded PhD Scholarship - The Brexit Effect: Diversification, Stock Market Valuation and the Exchange Rate

Department of Accounting and Finance

Strathclyde Business School


The shock of Brexit provides us an ideal laboratory to test the above cited competing theories and provide comprehensive and systematic answer to the question: Does global diversification of revenue generation, domicile of assets and procurement of capital helps to mitigate the adverse effect of macro-economic and political shock?

In order to answer this question, we need to launch an extensive scientific empirical investigation covering all the firms listed on London Stock Exchange (LSE) using Brexit as the unexpected exogenous shock that dramatically changed the valuations of individual firms and the exchange rate of the GBP. In addition to having the exogenous shock which provide us an opportunity to undertake a natural experiment, we are able to generate two groups of LSE listed firms.

The first group, called treatment group, are those firms which have more than 80% of their revenues and assets denominated in non-GBP currency and thus, could be referred as global firms. The other group, referred as control group, are the firms which have less than 20% of their revenue and assets denominated in foreign currencies.

Following economic intuition, it is expected that the valuation and cost of capital of these two groups would be deferentially affected, i.e. higher the diversification lesser the adverse effect of Brexit. Thus, the Brexit shock avails us the opportunity to establish credible causality between macro-economic/political risk and stock market valuation and cost of capital.


Candidates are required to have:

- An excellent undergraduate degree with Honours in a relevant business, scientific/technological or social science subject
- A Masters degree (or equivalent) will be strongly preferred
- Students may also have other relevant experience or skills which are relevant to this project (competent quantitative skill is also highly desirable
- Candidates who are not native English speakers will be required to provide evidence for their English skills (such as by IELTS or similar tests that are approved by UKVI, or a degree completed in an English speaking country)

Study information

Start month:

1 October 2017

Funding information

Funding applies to:
Open to applicants from a range of countries
Funding notes:

Stipend: £14,652 pa. Whilst open to International candidates, please note that this scholarship covers Home/EU/RUK Fee rate only.

Contacts and how to apply

Academic contact:

Enquiries to Dr Chandra Thapa, Accounting and Finance, email: chandra.thapa@strath.ac.uk

Administrative contact and how to apply:

To apply, please visit our website

Application deadline:

28 February 2017

Department Profile