Stakeholder Activism and Foreign Firm Exit From Russia in 2022

8 Pages Posted: 20 Jun 2023 Last revised: 21 Aug 2023

See all articles by Alex Knorre

Alex Knorre

Boston College; European University at St. Petersburg (EUSP); University of Pennsylvania - Department of Criminology

Ruslan Kuchakov

European University at St. Petersburg (EUSP)

Dmitriy Skougarevskiy

European University at St. Petersburg

Date Written: June 7, 2023

Abstract

We study foreign firm exit from Russia following the 2022 offensive in Ukraine. Using administrative data on the universe of equity ownership in Russia we find that Western-owned firms that exited Russia in 2022 accounted for 1.5%, 3.0%, and 3.6% of capital stock, revenues, and wage bill in 2021, respectively. Exiting firms comprised almost 1/4 of total Western firm output in Russia. In a triple difference design we show that stakeholder activism contributed to firm exit. Inclusion of a Western company on the Yale School of Management list of companies with exposure to Russia increased probability of its exit by 13.2 p.p. (+110.9% in relation to pre-conflict exit rate).

Keywords: firm exit, divestment, Russia, Ukraine

JEL Classification: F23, F51, F52

Suggested Citation

Knorre, Aleksei and Kuchakov, Ruslan and Skougarevskiy, Dmitriy, Stakeholder Activism and Foreign Firm Exit From Russia in 2022 (June 7, 2023). Available at SSRN: https://ssrn.com/abstract=4471582 or http://dx.doi.org/10.2139/ssrn.4471582

Aleksei Knorre

Boston College ( email )

140 Commonwealth Avenue
Chestnut Hill, MA 02467
United States

European University at St. Petersburg (EUSP) ( email )

3 Gagarinskaya Street
St. Petersburg, 191187
Russia

University of Pennsylvania - Department of Criminology ( email )

483 McNeil Building
Philadelphia, PA 19104
United States

Ruslan Kuchakov

European University at St. Petersburg (EUSP) ( email )

3 Gagarinskaya Street
St. Petersburg, 191187
Russia

Dmitriy Skougarevskiy (Contact Author)

European University at St. Petersburg ( email )

6/1A Gagarinskaya Street
St. Petersburg, 191187
Russia

HOME PAGE: http://eusp.org

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