Russia-Ukraine crisis: The effects on the European stock market
European Financial Management
44 Pages Posted: 27 Jul 2022
Date Written: July 7, 2022
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: Suggested Citation