The ripple effect: trade linkages and the stock market response to the Russia–Ukraine war
Journal: Review of World Economics
Year: 2025

Abstract This paper investigates how firms’ international linkages to Russia and Ukraine affected investors’ expectations following the escalation of the Russian–Ukrainian war. For this, we perform an event study around the Russian invasion of Ukraine on February 24, 2022, finding that firms with significant trade activity with Russia experienced a substantial reduction in cumulative returns. The effect on cumulative returns is especially pronounced for firms that are dependent on Russian commod