Evidence from the Russia-Ukraine Conflict on Management Decisions

Abstract

The Purpose of this research work is to examine the impact of Russia-Ukraine conflict on management decisions. Numerous businesses choose to stay in Russia despite pressure from the public and penalties to leave before Russia invades Ukraine in 2022. We examine how the financial market responded to remarks made by businesses that remained in Russia during the dramatic two weeks that followed the invasion. According to our research, a portfolio of keepers outperforms both the market benchmark and a portfolio of leavers. Remainers will suffer a severe market penalty from investors. Indicating that equities markets are very sensitive to corporate conduct during times of political unrest, there is evidence of higher trade volume and selling pressure on remainers.

Keyword- Russia-Ukraine conflict