Global evidence on the Russia–Ukraine conflict and energy stock returns
Journal article
Kakhkharov, Jakhongir, Onur, Ilke, Yalcin, Erkan and Zhu, Rong. (2024). Global evidence on the Russia–Ukraine conflict and energy stock returns. International Review of Economics and Finance. 93, pp. 413-435. https://doi.org/10.1016/j.iref.2024.03.063
Authors | Kakhkharov, Jakhongir, Onur, Ilke, Yalcin, Erkan and Zhu, Rong |
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Abstract | Using the event-study and difference-in-differences approaches, this paper examines the impact of the Russia–Ukraine conflict on the stock returns of alternative energy and oil & gas producers from 48 countries. We focus on multiple critical events from the beginning of the invasion through eight months into the conflict. Our empirical results indicate that renewable energy and oil & gas producers performed better than the general stock market. Oil & gas producers generated greater returns when compared with alternative energy firms, especially at the beginning of the conflict. The gap in stock returns between the two groups of energy producers shrank significantly as the conflict progressed. Particularly in Europe, later stages of the conflict witnessed greater alternative energy stock returns than oil & gas ones. A further examination of the index returns for the segment of well-established energy firms reveals that renewable indices performed better then oil & gas indices in every critical phase of the conflict. Finally, we show that the stock returns of renewable energy equipment manufacturers also exceeded those of oil & gas equipment producers during the crisis. Overall, our results indicate investors’ optimism about the prospect of green energy following the Russian invasion of Ukraine. |
Keywords | Russia–Ukraine conflict ; Alternative energy ; Oil & gas ; Stock returns |
Year | 01 Jan 2024 |
Journal | International Review of Economics and Finance |
Journal citation | 93, pp. 413-435 |
Publisher | Elsevier Science BV |
ISSN | 1059-0560 |
Digital Object Identifier (DOI) | https://doi.org/10.1016/j.iref.2024.03.063 |
Web address (URL) | https://www.sciencedirect.com/science/article/pii/S1059056024002284?via%3Dihub |
Open access | Published as ‘gold’ (paid) open access |
Research or scholarly | Research |
Page range | 413-435 |
Publisher's version | License File Access Level Open |
Output status | Published |
Publication dates | |
Online | 03 May 2024 |
Publication process dates | |
Accepted | 25 Mar 2024 |
Deposited | 20 Jun 2024 |
Additional information | © 2024 The Authors. Published by Elsevier Inc. |
This is an open access article under the CC BY license | |
Place of publication | Netherlands |
https://acuresearchbank.acu.edu.au/item/9095w/global-evidence-on-the-russia-ukraine-conflict-and-energy-stock-returns
Download files
Publisher's version
OA_Kakhkharov_2024_Global_evidence_on_the_Russia_Ukraine.pdf | |
License: CC BY 4.0 | |
File access level: Open |
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