ESG and Geopolitical Shock: Evidence from the Russia-Ukraine War
ESG and Geopolitical Shock: Evidence from the Russia-Ukraine War
Author(s): Michala Moravcová, Adéla SkládanáSubject(s): Business Economy / Management, Political history, Recent History (1900 till today), Financial Markets, Russian war against Ukraine, History of Sciences
Published by: SAV - Slovenská akadémia vied - Ekonomický ústav SAV a Prognostický ústav SAV
Keywords: event study; European stocks; Russia-Ukraine war; geopolitical risk; ESG
Summary/Abstract: This study examines European firms with varying ESG characteristics and their immediate stock price reactions to the outbreak of the Russia-Ukraine war, using an event-study framework. Industry-neutral portfolios are constructed based on overall ESG and individual ESG pillars. The results of the event study analysis reveal that high-ESG portfolios declined, while low-ESG portfolios appreciated, following the outbreak of the war. Portfolios based on individual pillars, specifically high-Social, Government, and Controversy exhibit significant positive abnormal returns at the event onset; these effects were not translated into significant cumulative returns. On the other hand, the low-Social, Government, and Controversy portfolios exhibit significant negative abnormal returns during event window that neither were translated into significant cumulative returns.
Journal: Ekonomický časopis
- Issue Year: 74/2026
- Issue No: 03-04
- Page Range: 103-132
- Page Count: 30
- Language: English
