Stock market bubble

Event study

Philosophy

Macroeconomics

Business

Economics

Archaeology

Political science

International economics

Stock (firearms)

Geography

Ukrainian

Sanctions

Financial crisis

Context (archaeology)

Stock market

European union

Linguistics

Monetary economics

Financial system

European Financial Management

We examine the effect of the Russia–Ukraine crisis on the European stock markets. Because of increased political uncertainty, geographic proximity and the ramifications of the fresh sanctions imposed on Russia, the European stock markets tended to react negatively to this crisis. We find that on 21 February 2022, when Russia recognized two Ukrainian states as autonomous regions, European stocks incurred a significant negative abnormal return. Moreover, the negative stock price reactions continued in the post‐event period. The magnitude of the stock price reactions to this crisis exhibits considerable variation across industries, countries and size of the company.

Russia–Ukraine crisis: The effects on the European stock market