The impact of Russia-Ukraine invasion on market reaction across various industries: an event study on the ASEAN market

Dadang Lesmana and Rizky Yudaruddin

Afro-Asian Journal of Finance and Accounting, 2024, vol. 14, issue 4, 515-529

Abstract: The purpose of this study is to investigate the market reaction of ASEAN countries to the Russia-Ukraine invasion. This study used a sample of 2,755 listed companies in ASEAN countries. This research uses the event study method. We use cumulative abnormal return (CAR) as a measure of market reaction. Then, we use 24th February 2022, as the event day Russia announces the invasion of Ukraine our paper finds significantly negative reactions to the invasion of Russia-Ukraine in ASEAN-5 countries before and after the announcement. However, the Philippine market had a positive reaction which was driven by the positive trend before the invasion and the entry of renewable energy companies into market. We also showed that most of the industrial sectors in ASEAN countries reacted negatively to the invasion before and after the announcement. However, the energy industry reacted positively due to the acceleration of the renewable energy transition.

Keywords: market reaction; Russia-Ukraine invasion; various industries; ASEAN; event study. (search for similar items in EconPapers)
Date: 2024
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