The impact of the war in Ukraine on energy prices: consequences for firms' financial performance

Fabrizio Ferriani and Andrea Giovanni Gazzani

No 729, Questioni di Economia e Finanza (Occasional Papers) from Bank of Italy, Economic Research and International Relations Area

Abstract: We analyse the impact of the shock to energy prices induced by the war in Ukraine on the financial performance of the major European firms listed in the Eurostoxx 600 index. We find that equity returns (CDS spreads) decreased (increased) more substantially for firms characterized by high energy intensity and carbon emission intensity. We then present a method, based on a VAR model, to produce forecasts of firms’ CDS spreads conditional on a 3-month stress period of high electricity prices and we document a non-negligible increase in the number of firms with a CDS-implied non-investment rating.

Keywords: war in Ukraine; energy impacts; financial performance; CDS spread (search for similar items in EconPapers)
JEL-codes: G12 G14 G32 G33 (search for similar items in EconPapers)
Date: 2022-11
New Economics Papers: this item is included in nep-cis and nep-ene
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Citations: View citations in EconPapers (5)

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Journal Article: The impact of the war in Ukraine on energy prices: Consequences for firms’ financial performance (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:bdi:opques:qef_729_22

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