Are high-income and innovative nations resilient to the Russia-Ukraine war?
In: International Review of Economics & Finance, Jg. 93 (2024-06-01), S. 1268-1287
Online
academicJournal
Using an event study analysis on daily closing prices of 83 stock market indices from February 10, 2021 to March 14, 2022, we find that the Russia-Ukraine war negatively impacts stock returns, affecting the high-income nations the most. However, the impact varies from country to country, with some experiencing significant positive or negative abnormal returns during different event windows. Cross-sectional results indicate that the income group of nations, innovation index, net-oil exports, trade-to-GDP ratio, military expenditure, inflation, past returns, and volatility significantly impact the cumulative abnormal returns during different event windows. While countries with a higher innovation index, higher net oil exports, higher military expenditure and lower trade-to-GDP ratios experience positive returns, high-income countries experience significant negative returns. Concomitantly, higher past returns and volatility predict abnormal returns during the war. • Russia-Ukraine war negatively impacted global stock market returns. • Countries with higher innovation index and low trade-to-GDP ratio are resilient. • Higher military expenditure is associated with positive abnormal returns. • Net oil exporters benefit, high inflation countries suffer. • High-income nations' global connectivity leads to negative post-event abnormal returns. [ABSTRACT FROM AUTHOR]
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Are high-income and innovative nations resilient to the Russia-Ukraine war?
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Autor/in / Beteiligte Person: | Kumari, Vineeta ; Hassan, Majdi ; Pandey, Dharen Kumar |
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Zeitschrift: | International Review of Economics & Finance, Jg. 93 (2024-06-01), S. 1268-1287 |
Veröffentlichung: | 2024 |
Medientyp: | academicJournal |
ISSN: | 1059-0560 (print) |
DOI: | 10.1016/j.iref.2024.04.006 |
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