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

Author

Listed:
  • S. Boubaker

    (Métis Lab EM Normandie - EM Normandie - École de Management de Normandie)

  • J.W. Goodell

    (University of Akron)

  • D.K. Pandey

    (Magadh University - Gaya University - Magadh Yūnīvarsiṭī)

  • V. Kumari

    (Magadh University - Gaya University - Magadh Yūnīvarsiṭī)

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.

Suggested Citation

  • S. Boubaker & J.W. Goodell & D.K. Pandey & V. Kumari, 2022. "Heterogeneous Impacts of Wars on Global Equity Markets: Evidence from the Invasion of Ukraine," Post-Print hal-04452667, HAL.
    • Handle: RePEc:hal:journl:hal-04452667
    DOI: 10.1016/j.frl.2022.102934
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    More about this item

    Keywords

    Abnormal returns; Conflicts and equity markets; Event study; Globalization; Ukraine conflict;
    All these keywords.

    JEL classification:

    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

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