Commodity Market Response to Geopolitical Events: Evidence from the Ukrainian-Russian Conflict

Mohamad H. Shahrour, Aymen Smondel () and Philippe Luu ()
Additional contact information
Aymen Smondel: GRM - Groupe de Recherche en Management - EA 4711 - UNS - Université Nice Sophia Antipolis (1965 - 2019) - UniCA - Université Côte d'Azur
Philippe Luu: GRM - Groupe de Recherche en Management - EA 4711 - UNS - Université Nice Sophia Antipolis (1965 - 2019) - UniCA - Université Côte d'Azur

Post-Print from HAL

Abstract: This study examines the impact of the recent geopolitical turbulence, mainly wars, on the global financial markets, specifically commodities. We employ the event study methodology in the context of the Ukrainian-Russian war. The situation has the potential to cause significant economic impacts given Russia's position as a major oil producer and a natural gas supplier to Europe, leading to supply chain disruptions and an increase in the cost of living. The results suggest that such a situation has resulted in all-time highs for various assets. Our findings are useful for investors to implement more effective hedging strategies to manage their portfolios against market risk.

Keywords: Geopolitical events; event study; commodities; abnormal returns; hedging (search for similar items in EconPapers)
Date: 2023-07-04
References: Add references at CitEc
Citations:

Published in Summer Conference on Responsibility and Ethics in Business & Finance, Jul 2023, Nice, France

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04222414

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().