Heterogeneous Impacts of Wars on Global Equity Markets: Evidence from the Invasion of Ukraine

Sabri Boubaker, J.W. Goodell, Dharen Pandey and V. Kumari
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J.W. Goodell: University of Akron
V. Kumari: Magadh University - Gaya University - Magadh Yūnīvarsiṭī

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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. \textcopyright 2022 Elsevier Inc.

Keywords: Abnormal returns; Conflicts and equity markets; Event study; Globalization; Ukraine conflict (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (37)

Published in Finance Research Letters, 2022, 48, ⟨10.1016/j.frl.2022.102934⟩

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Journal Article: Heterogeneous impacts of wars on global equity markets: Evidence from the invasion of Ukraine (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04452667

DOI: 10.1016/j.frl.2022.102934

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