Russian Invasion of Ukraine, Geopolitical Risk, and Global Financial Markets

18 Pages Posted: 6 May 2022

See all articles by Ashrafee T Hossain

Ashrafee T Hossain

Memorial University of Newfoundland (MNU) - Faculty of Business Administration

Abdullah-Al Masum

University of Wisconsin - Oshkosh

Date Written: March 14, 2022

Abstract

Using daily data from 39 different economies, we provide evidence that Russian invasion of Ukraine negatively impacted the global financial markets. Our study has three major takeaways. First, the event increases overall market volatilities, and the escalated daily geopolitical risk (GPRD) helps explain the variations. Second, the GPRD, particularly during the post-invasion week, drives the global stock indices to decline and global currencies to depreciate against the US dollar. Third, the Euro-zone countries are severely affected by the invasion compared to the rest of the world, understandably due to their geographical proximity, ideological distance, and higher energy dependence on Russia.

Suggested Citation

Hossain, Ashrafee T and Masum, Abdullah Al, Russian Invasion of Ukraine, Geopolitical Risk, and Global Financial Markets (March 14, 2022). Available at SSRN: https://ssrn.com/abstract=4056137 or http://dx.doi.org/10.2139/ssrn.4056137

Ashrafee T Hossain (Contact Author)

Memorial University of Newfoundland (MNU) - Faculty of Business Administration ( email )

St. John's, Newfoundland A1B 3X5
Canada

Abdullah Al Masum

University of Wisconsin - Oshkosh ( email )

College of Business
800 Algoma Blvd
Oshkosh, WI 54901
United States

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