The Effects of 2022 Russian Invasion of Ukraine on Global Stock Markets: An Event Study Approach

23 Pages Posted: 29 Mar 2022

See all articles by Meihong Sun

Meihong Sun

Zhejiang University - College of Economics

Huasheng Song

Zhejiang University - Center for Research of Private Economy (CRPE)

Chao Zhang

Zhejiang University

Date Written: March 7, 2022

Abstract

This study examines the stock market reactions to the Russian invasion on Feb. 24 in 2022. Using an event study methodology, we document that the war has a different impact on stock markets across countries and sectors, depending on how deeply the countries or industries are involved in the war. Country-level analysis confirms that firms in EU countries have experienced a huge decline in cumulative abnormal returns while firms in other countries away from the battlefield seem not to be significantly affected. Sector-level analysis shows that the manufacturing sector in EU countries is heavily affected by the war and finance and services sectors show a negative effect to a larger extent than manufacturing. In addition, Russian oil and gas firms are negatively affected by the war. Our findings suggest economic consideration is likely to be the compelling factor for Russian governments to halt its war in Ukraine.

Keywords: The Russian invasion, global stock markets, event study, economic consideration.

JEL Classification: G14, G15, G12.

Suggested Citation

Sun, Meihong and Song, Huasheng and Zhang, Chao, The Effects of 2022 Russian Invasion of Ukraine on Global Stock Markets: An Event Study Approach (March 7, 2022). Available at SSRN: https://ssrn.com/abstract=4051987 or http://dx.doi.org/10.2139/ssrn.4051987

Meihong Sun

Zhejiang University - College of Economics ( email )

Yuquan Campus 38 Zheda Road
Hangzhou, Zhejiang 310027
China

Huasheng Song

Zhejiang University - Center for Research of Private Economy (CRPE) ( email )

Hangzhou, Zhejiang 310027
China

Chao Zhang (Contact Author)

Zhejiang University ( email )

38 Zheda Road
Hangzhou, Zhejiang 310058
China

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