Banking sector's reaction during the Russian invasion of Ukraine: who reacted the most?

Yudaruddin, Rizky; Lesmana, Dadang

doi:10.1108/jes-04-2023-0206

Cited by 8 publications

(3 citation statements)

References 51 publications

(170 reference statements)

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The impact on the financial markets of Russia’s invasion of Ukraine remains under debate (Abbassi et al ., 2023; Basnet et al. , 2022; Boubaker et al ., 2022; Boungou and Yatie, 2022; Deng et al ., 2022; Nerlinger and Utz, 2022; Tosun and Eshraghi, 2022; Yousaf et al ., 2022; Kamal et al ., 2023; Kumari et al ., 2023; Yudaruddin and Lesmana, 2023). Most studies have stated that the war has negatively impacted the financial markets due to increased geopolitical risks (Abbassi et al ., 2023; Basnet et al.…”

Section: Introductionmentioning

confidence: 99%

The market reaction of real estate companies to the announcement of the Russian–Ukrainian invasion

Yudaruddin,

Lesmana

2024

JERER

Self Cite

View full text Add to dashboard Cite

PurposeThis study aims to investigate the market reaction in the real estate market to the announcement of Russia’s invasion of Ukraine.Design/methodology/approachThis study uses the event study method to assess the market reaction to the announcement that Russia is invading Ukraine. The sample in this study comprises 2,325 companies in the real estate market. We also conduct a cross-sectional analysis to determine the influence of the North Atlantic Treaty Organization (NATO) members and company characteristics on market reactions during the invasion.FindingsThe global market reacts significantly negative toward Russia’s invasion of Ukraine. This indicates that the war poses a high geopolitical risk that prompts financial markets down. The authors also demonstrate that emerging and frontier markets react significantly negative to the invasion before and after its announcement. Meanwhile, developed markets tend to react only before the invasion is announced. Furthermore, we find that the NATO members react more strongly than other markets.Social implicationsThis result implies that war prompts investors to flee from the stock exchange, while the deeper the country’s involvement, the more investors worry about the risks.Originality/valueThis study is the first to discuss the market reaction to the Russian invasion of Ukrainian, specifically in the real estate market.

show abstract

Section: Introductionmentioning

confidence: 99%

The market reaction of real estate companies to the announcement of the Russian–Ukrainian invasion

Yudaruddin,

Lesmana

2024

JERER

Self Cite

View full text Add to dashboard Cite

show abstract

“…1, 3, 8, 9, 17], which focused on the European region and developed countries. In addition, the ASEAN market is sensitive to macro shocks [18][19][20]. Secondly, to our best knowledge, we provide the only study to examine the market reacts to COVID-19 and policy response in the ASEAN stock market with different sectors.…”

Section: Introductionmentioning

confidence: 99%

Market Reaction to COVID-19 and Policy Response Across Different Sectors: An Event Study on ASEAN Stock Market

Lesmana,

Yudaruddin

2024

jour

Self Cite

View full text Add to dashboard Cite

The purpose of the study is to investigate the market reaction to COVID-19 and the policy response in the ASEAN stock market. The subjects of this study are companies located in ASEAN countries (Indonesia, Malaysia, Thailand, the Philippines, and Vietnam) as many as 2349 companies. The basic methodology of this research uses the event study method using CAR (Cumulative Abnormal Return) as a measure of market reaction. We also regressed the effect of firm characteristics (SIZE, ROA, LEV, CASH, AGE) on market reaction. According to the paper’s results, the ASEAN stock market reacted negatively to the announcement of COVID-19 cases and deaths. In this condition, the markets in Malaysia, the Philippines, and Vietnam had the worst reactions to the pandemic outbreak. Moreover, the market negatively reacted to the policy response emphasizing the spread of this disease. We also find that several sectors also provided a negative reaction to COVID-19 and the policy response in the ASEAN stock market. In addition, the company’s characteristics significantly influenced the encouragement of market reactions to the pandemic and regulations. Practical implications were provided for policymakers regarding the need to consider market conditions in interventions in the spread of the health crisis. Investors should also consider the characteristics involved in handling the COVID-19 pandemic.

show abstract

“…The market reacted negatively to the invasion both before and after it was announced, with developed and emerging markets suffering a negative impact and frontier markets only slightly so, according to a study on the banking sector's reaction during the Russian invasion of Ukraine. Additionally, the analysis discovered that both before and after the invasion was declared, the banking markets of NATO nations saw a considerable and unfavorable reaction (Yudaruddin & Lesmana, 2023). Another study looked at how trade relations affected how stock markets responded to Russia's invasion of Ukraine.…”

mentioning

confidence: 99%

Market Reactions to the Russian Invasion: a Study of Lq-45 and Jii Stocks

Husniyyah,

Amri,

Rahmawati

2023

FJSFM

View full text Add to dashboard Cite

Investors who consider making an investment consider economic and non-economic market information. Information circulating can send signals that cause market reactions, such as the invasion of Ukraine by Russia. Investors may anticipate receiving bad news from this event. The aim of this research is to determine the impact of the Russian invasion of Ukraine on trading volume activity (TVA), average abnormal returns (AAR), and abnormal returns (AR). The presence of AR on the day of the event, as well as variations in AAR and TVA before and after the event, are indicators of impact. This study uses a quantitative approach. The population of this research is all companies registered in LQ-45 and the Jakarta Islamic Index (JII). An important finding from this research is that shares of companies included in the LQ-45 index have AR on Day 3; The AAR of companies listed in the LQ-45 and JII indices was less affected by the Russian invasion of Ukraine; and TVA shares of companies listed on the LQ-45 and JII indices were significantly impacted by Russia's invasion of Ukraine. The findings of this research indicate that investors must be more careful and vigilant when interacting with non-economic events that may contain information.

show abstract

Banking sector's reaction during the Russian invasion of Ukraine: who reacted the most?

Cited by 8 publications

References 51 publications

The market reaction of real estate companies to the announcement of the Russian–Ukrainian invasion

The market reaction of real estate companies to the announcement of the Russian–Ukrainian invasion

Market Reaction to COVID-19 and Policy Response Across Different Sectors: An Event Study on ASEAN Stock Market

Market Reactions to the Russian Invasion: a Study of Lq-45 and Jii Stocks

Contact Info

Product

Resources

About