Title: Surviving crisis: the role of sustainable investments in navigating the impact of the Russia-Ukraine war

Authors: Mohit Saini; Mahender

Addresses: Department of Commerce, Maharshi Dayanand University, Rohtak, Haryana, India ' Department of Commerce, Maharshi Dayanand University, Rohtak, Haryana, India

Abstract: This study examines the impact of the Russia-Ukraine war on sustainable and conventional investments in India using an event study methodology. The results show that the war has a negative impact on conventional indices and a positive impact on sustainable indices for two days after the war. However, the positive impact on sustainable indices does not persist, while the conventional markets experience growth in abnormal returns with high instability. In the long run, sustainable indices have positive abnormal returns compared to low abnormal returns in conventional indices. The study also finds that sustainable indices have better performance in the long run than conventional indices post-event. The study has implications for investors, portfolio managers and policymakers, suggesting that investors and portfolio managers should diversify and minimise risk by investing in sustainable indices for the long term and policymakers should consider more stringent sustainable reporting practices.

Keywords: event study methodology; sustainable investment; socially responsible investment; ESG investment; Russia-Ukraine war; war crisis.

DOI: 10.1504/IJDIPE.2023.134637

International Journal of Diplomacy and Economy, 2023 Vol.9 No.2, pp.189 - 204

Received: 24 Jan 2023
Accepted: 25 Mar 2023
Published online: 01 Nov 2023 *

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