Russia-Ukraine crisis: The effects on the European stock market

European Financial Management

44 Pages Posted: 27 Jul 2022

See all articles by Shaker Ahmed

Shaker Ahmed

University of Vaasa

Mostafa Monzur Hasan

Macquarie University

Md Rajib Kamal

NTNU Business School, The Norwegian University of Science and Technology; Sher-e-Bangla Agricultural University

Date Written: July 7, 2022

Abstract

We examine the effect of the Russia–Ukraine crisis on the European stock markets. Because of increased political uncertainty, geographic proximity, and the ramifications of the fresh sanctions imposed on Russia, the European stock markets tended to react negatively to this crisis. We find that on 21 February 2022, when Russia recognized two Ukrainian states as autonomous regions, European stocks incurred a significant negative abnormal return. Moreover, the negative stock price reactions continued in the post-event period. The magnitude of the stock price reactions to this crisis exhibits considerable variation across industries, countries, and size of the company.

Keywords: Russia–Ukraine crisis, Political uncertainty, Stock returns, Event study

JEL Classification: G01, G21, G30, G32

Suggested Citation

Ahmed, Shaker and Hasan, Mostafa Monzur and Kamal, Md Rajib, Russia-Ukraine crisis: The effects on the European stock market (July 7, 2022). European Financial Management, Available at SSRN: https://ssrn.com/abstract=4155911

Shaker Ahmed

University of Vaasa ( email )

P.O. Box 700
Wolffintie 34
FIN-65101 Vaasa, FI-65101
Finland

Mostafa Monzur Hasan (Contact Author)

Macquarie University ( email )

Level 3, Building 4ER,
Sydney, NSW 2109
Australia

HOME PAGE: http://https://researchers.mq.edu.au/en/persons/mostafa-hasan

Md Rajib Kamal

NTNU Business School, The Norwegian University of Science and Technology ( email )

Norway

Sher-e-Bangla Agricultural University ( email )

1207
Bangladesh

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