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Corporate activism during the 2022 Russian invasion of Ukraine

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  • Glambosky, Mina
  • Peterburgsky, Stanley

Abstract

We examine the market’s reaction to corporate activism in the context of the 2022 Russian invasion of Ukraine. We document a negative reaction to the announcement of divestment from Russia. The results are particularly pronounced for firms fully withdrawing from the country. However, evidence suggests that companies recover their initial losses over the following two weeks. We also find that corporate activists that act early (“leaders”) experience event-window stock price declines while those that act late (“followers”) do not.

Suggested Citation

  • Glambosky, Mina & Peterburgsky, Stanley, 2022. "Corporate activism during the 2022 Russian invasion of Ukraine," Economics Letters, Elsevier, vol. 217(C).
    • Handle: RePEc:eee:ecolet:v:217:y:2022:i:c:s0165176522002099
    DOI: 10.1016/j.econlet.2022.110650
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    References listed on IDEAS

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    1. Michael C. Jensen, 2010. "Value Maximization, Stakeholder Theory, and the Corporate Objective Function," Journal of Applied Corporate Finance, Morgan Stanley, vol. 22(1), pages 32-42, January.
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    Cited by:

    1. Pandey, Dharen Kumar & Lucey, Brian M. & Kumar, Satish, 2023. "Border disputes, conflicts, war, and financial markets research: A systematic review," Research in International Business and Finance, Elsevier, vol. 65(C).
    2. Umar, Zaghum & Bossman, Ahmed & Choi, Sun-Yong & Vo, Xuan Vinh, 2023. "Are short stocks susceptible to geopolitical shocks? Time-Frequency evidence from the Russian-Ukrainian conflict," Finance Research Letters, Elsevier, vol. 52(C).
    3. Hu, Yang & Lang, Chunlin & Corbet, Shaen & Hou, Yang (Greg) & Oxley, Les, 2023. "Exploring the dynamic behaviour of commodity market tail risk connectedness during the negative WTI pricing event," Energy Economics, Elsevier, vol. 125(C).
    4. Martins, António Miguel & Correia, Pedro & Gouveia, Ricardo, 2023. "Russia-Ukraine conflict: The effect on European banks’ stock market returns," Journal of Multinational Financial Management, Elsevier, vol. 67(C).

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    More about this item

    Keywords

    Corporate activism; Ukraine war; Ukraine invasion;
    All these keywords.

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General

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