Stock Market Response to the Russia-Ukraine War: Evidence from an Emerging Market

KELEŞ E.

Journal of East-West Business, cilt.29, sa.3, ss.307-322, 2023 (ESCI) identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 29 Sayı: 3
  • Basım Tarihi: 2023
  • Doi Numarası: 10.1080/10669868.2023.2210121
  • Dergi Adı: Journal of East-West Business
  • Derginin Tarandığı İndeksler: Emerging Sources Citation Index (ESCI), Scopus, Academic Search Premier, IBZ Online, International Bibliography of Social Sciences, ABI/INFORM, Business Source Elite, Business Source Premier, Geobase, Hospitality & Tourism Complete, Hospitality & Tourism Index, PAIS International
  • Sayfa Sayıları: ss.307-322
  • Anahtar Kelimeler: Emerging market, resilience, Russia-Ukraine war, stock returns
  • Marmara Üniversitesi Adresli: Evet

Özet

This study examines the role of financial factors contributing to firms’ resilience during the Russia-Ukraine war. Event study results show a significant adverse reaction, which started before the official war announcement and grew over time. Further, cross-sectional analyses uncover that the negative effect is mitigated for larger and more profitable firms but amplified for high market-cap firms with high cash and debt-holding; both effects are more pronounced for non-financial companies. This study contributes by exploring Turkey as a unique emerging market setting due to its significant geopolitical position, strategic trade, and business partnership with the European Union and Russia.