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Heterogeneous impacts of wars on global equity markets: Evidence from the invasion of Ukraine

Sabri Boubaker, John W. Goodell, Dharen Pandey () and Vineeta Kumari

Finance Research Letters, 2022, vol. 48, issue C

Abstract: Using an event study methodology to examine the impact of the 2022 Russian invasion of Ukraine, we find that this invasion generated negative cumulative abnormal returns for global stock market indices, but with heterogeneous effects. Cross-sectional analysis reveals that economic globalization as measured by GDP-scaled trade is negatively associated with event-day and post-event returns. Consistent with the expected economic stimulus of military preparedness, markets of NATO countries exhibited higher returns. Results are consistent with markets of more globalized economies being more vulnerable to international conflicts, with, however, notable heterogeneities.

Keywords: Ukraine conflict; Conflicts and equity markets; Event study; Abnormal returns; Globalization (search for similar items in EconPapers)
JEL-codes: G12 G14 G15 (search for similar items in EconPapers)
Date: 2022
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DOI: 10.1016/

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