CSR disclosure, political risk and market quality: Evidence from the Russia-Ukraine conflict

Danjue Clancey-Shang and Chengbo Fu

Global Finance Journal, 2024, vol. 60, issue C

Abstract: In this study, we investigate the divergence in market quality between high-ESG (Environmental, Social, and Governance) and low-ESG firms in response to the Russia-Ukraine conflict. With an event-study approach, we find that better CSR (Corporate Social Responsibility) performance alleviates the market quality deterioration following the outbreak of the war for US-listed foreign firms. Such an effect is insignificant for US domestic firms. We also find that foreign firms experience more pronounced market quality deterioration compared to their US counterparts. Our findings align with the resiliency hypothesis regarding the link between CSR and financial performance, supporting that better CSR performance is associated with improved information transparency.

Keywords: ESG; Information environment; Market quality; American depository receipt; Russia-Ukraine conflict (search for similar items in EconPapers)
JEL-codes: G12 G14 G15 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:glofin:v:60:y:2024:i:c:s1044028324000103

DOI: 10.1016/j.gfj.2024.100938

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