Biermann, Marcus and Leromain, Elsa (2023) The indirect effect of the Russian-Ukrainian war through international linkages: early evidence from the stock market. CEP Discussion Papers (CEPDP1899). London School of Economics and Political Science. Centre for Economic Performance, London, UK.
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Abstract
This paper investigates how firms' international linkages to Russia and Ukraine affected investors' expectations following the escalation of the Russian-Ukrainian war. For this, we perform an event study around the Russian invasion of Ukraine on February 24, 2022, finding that firms with significant trade activity with Russia experienced a substantial reduction in cumulative returns. The effect on cumulative returns is especially pronounced for firms that are dependent on Russian commodities. The impact on the aggregate stock market performance of third countries was on average 0.8 percentage points. The highest losses were borne by European countries.
| Item Type: | Monograph (Discussion Paper) |
|---|---|
| Official URL: | https://cep.lse.ac.uk/_new/publications/discussion... |
| Additional Information: | © 2023 The Author(s) |
| Divisions: | Centre for Economic Performance |
| Subjects: | H Social Sciences > HC Economic History and Conditions J Political Science > JZ International relations |
| JEL classification: | F - International Economics > F1 - Trade > F15 - Economic Integration F - International Economics > F2 - International Factor Movements and International Business > F23 - Multinational Firms; International Business G - Financial Economics > G1 - General Financial Markets > G14 - Information and Market Efficiency; Event Studies G - Financial Economics > G1 - General Financial Markets > G15 - International Financial Markets |
| Date Deposited: | 23 Jan 2024 11:57 |
| Last Modified: | 23 Jan 2024 11:57 |
| URI: | http://eprints.lse.ac.uk/id/eprint/121332 |
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