The ripple effect: trade linkages and the stock market response to the Russia–Ukraine war

Marcus Biermann () and Elsa Leromain ()
Additional contact information
Marcus Biermann: Bielefeld University
Elsa Leromain: Centre for Economic Performance

Review of World Economics (Weltwirtschaftliches Archiv), 2025, vol. 161, issue 4, No 11, 1637-1660

Abstract: Abstract This paper investigates how firms’ international linkages to Russia and Ukraine affected investors’ expectations following the escalation of the Russian–Ukrainian war. For this, we perform an event study around the Russian invasion of Ukraine on February 24, 2022, finding that firms with significant trade activity with Russia experienced a substantial reduction in cumulative returns. The effect on cumulative returns is especially pronounced for firms that are dependent on Russian commodities. The overall impact on the aggregate stock market performance of third countries was on average 1.5 percentage points. The highest losses were borne by European countries.

Keywords: Russia–Ukraine war; Trade linkages; Multinationals; Stock market; Event study (search for similar items in EconPapers)
JEL-codes: F15 F23 F51 G14 G15 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s10290-025-00594-4 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:spr:weltar:v:161:y:2025:i:4:d:10.1007_s10290-025-00594-4

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/10290/PS2

DOI: 10.1007/s10290-025-00594-4

Access Statistics for this article

Review of World Economics (Weltwirtschaftliches Archiv) is currently edited by Paul Bergin, Holger Görg, Cédric Tille and Gerald Willmann

More articles in Review of World Economics (Weltwirtschaftliches Archiv) from Springer, Institut für Weltwirtschaft (Kiel Institute for the World Economy) Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().