What is it about?
Capital markets are very sensitive to new information, especially if it has political and economic implications. In this research we try to quantify the effect of the outbreak of the Ukrainian war on markets globally, and also find out whether the impact depends on economic, political or both factors.
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Why is it important?
It is important for investors and academics, because this article is informative in the way that it differences among which factors could eventually led to a major exposition to an external shock such as a war, affecting both returns and volatility of stock markets.
Perspectives
It is a direct and simple article that gets straight to the point. After Russia's invasion of Ukraine, virtually all stock markets collapsed for a variety of reasons. First, we quantify that damage. Moreover, not all markets lost capital in the same way. Second, we identified how much of the damage was caused by economic issues (dependence on gas, for example) and how much by political issues (belonging to the former USSR). In a very practical way, we show practitioners, academics and students how much of the investors' reaction can be explained by simple rational reasons.
Pedro L. Angosto-Fernández
Universidad Miguel Hernandez de Elche
Read the Original
This page is a summary of: A Russian carol: impact and dependence on global equity markets during the Ukraine invasion, Journal of Economic Studies, December 2022, Emerald,
DOI: 10.1108/jes-06-2022-0364.
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