Financial sanctions and global stock market reaction: Evidence from the Russia-Ukraine conflict
Chwee-Ming Tee,
Wai-Yan Wong and
Chee-Wooi Hooy
Finance Research Letters, 2023, vol. 58, issue PB
Abstract:
Drawing from recent studies on the effect of Russia-Ukraine war on stock markets, this study examines global stock markets’ reactions to sanctions at the beginning of the war. Using the event study methodology, this study finds that investors place higher valuation for firms located in countries that sanction Russia, in comparison with stock markets located in countries which did not sanction Russia. In addition, the higher valuation is stronger, if firms are politically connected or located in countries with lower geopolitical risks.
Keywords: Russia; Ukraine; Event study; Stock market; Market return; War; Sanction (search for similar items in EconPapers)
JEL-codes: E66 G14 G40 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (2)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:58:y:2023:i:pb:s1544612323007705
DOI: 10.1016/j.frl.2023.104398
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