Title: Russia-Ukraine war: impacts on major stocks and oil markets

Authors: Mohit Saini; Mahender Yadav; Vaibhav Aggarwal

Addresses: Department of Commerce, Maharshi Dayanand University, Rohtak, India ' Department of Commerce, Maharshi Dayanand University, Rohtak, India ' Jindal Global Business School, O.P. Jindal Global University, Sonipat, Haryana, India

Abstract: This study examines the impact of the Russia-Ukraine war on the top ten stock markets, along with Russian markets and oil markets. The event study methodology is employed to examine the abnormal returns, and later results' robustness is tested by non-parametric tests. The first finding is that European markets are worst hit by war. Second, US markets generated significant upside abnormal returns. Third, Asian markets are the least affected. Interestingly despite sanctions, Russian markets gave maximum positive cumulative abnormal returns for ten days post the event day. Further, oil markets acted as an effective hedge on expected lines. This study implies that the investors may consider the southern nations to diversify the war risk since most wars that happened in the past were in the Middle East or European region. The southern hemisphere has less proximity and dependency on the Middle East and Europe.

Keywords: arm conflicts; war; stock markets; oil markets; Russia-Ukraine; top 10 countries.

DOI: 10.1504/IJEF.2024.137635

International Journal of Electronic Finance, 2024 Vol.13 No.2, pp.216 - 255

Received: 06 Oct 2022
Accepted: 13 Feb 2023
Published online: 02 Apr 2024 *

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