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The Russia–Ukraine conflict and investor psychology in financial markets

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  • Emon Kalyan Chowdhury
  • Umme Humaira

Abstract

This study examines the effect of the Russia–Ukraine conflict on global financial markets and the resulting changes in investor psychology. We have analysed weekly data from January 2021 to March 2023, including indicators such as gross national income, Bitcoin historical price, Standard and Poor 500 index, US consumer price index, US dollar index, and investor psychology index, using a variety of econometric techniques. Our findings reveal a positive and significant correlation between investor psychology and market returns. These results highlight the importance of monitoring investor psychology during times of conflict as it can greatly impact investment decisions in financial markets, providing valuable insights for investors and policymakers.

Suggested Citation

  • Emon Kalyan Chowdhury & Umme Humaira, 2023. "The Russia–Ukraine conflict and investor psychology in financial markets," Economic Affairs, Wiley Blackwell, vol. 43(3), pages 388-405, October.
    • Handle: RePEc:bla:ecaffa:v:43:y:2023:i:3:p:388-405
    DOI: 10.1111/ecaf.12596
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    References listed on IDEAS

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    Cited by:

    1. Hasan, Amena & Dowla, Asif-Ud & Tarannum, Ramisa, 2024. "Financial Inclusion and Economic Growth in Developing Nations: A Case Study of Bangladesh," MPRA Paper 120213, University Library of Munich, Germany, revised 08 Feb 2024.
    2. Khanam, Rifat Binte & Rabeya, Jannatul Ferdous & Hasan, Amena, 2024. "Building Trust, Fueling Growth: The Cornerstone Role of Capital Market Governance in Bangladesh," MPRA Paper 121449, University Library of Munich, Germany, revised 08 May 2024.
    3. Hasan, Amena & Nahar, Kamrun & Akhter, Suraiya, 2024. "Cryptocurrency Scams: A Multi-Pronged Approach to Mitigating Risks Through Regulation, Enforcement, and Consumer Education," MPRA Paper 121215, University Library of Munich, Germany, revised 31 Jan 2024.
    4. Patel, Rajesh & Khan, Fatima & Silva, Buddhika & Shaturaev, Jakhongir, 2023. "Unleashing the Potential of Artificial Intelligence in Auditing: A Comprehensive Exploration of its Multifaceted Impact," MPRA Paper 119616, University Library of Munich, Germany, revised 05 Dec 2023.
    5. Nahar, Kamrun & Akhter, Suraiya & Shaturaev, Jakhongir, 2024. "Impact of Artificial Intelligence on the Human Resources Management," MPRA Paper 120579, University Library of Munich, Germany, revised 08 Feb 2024.
    6. repec:pra:mprapa:121883 is not listed on IDEAS
    7. Chowdhury, Emon Kalyan, 2024. "Role of Stock Exchanges in Regional Economic Progress: A South Asia Perspective," MPRA Paper 123002, University Library of Munich, Germany, revised 08 Dec 2024.
    8. Hoang, Nga & Zhen, Zhao & Shaturaev, Jakhongir, 2023. "Decolonizing Development: Unpacking Post-Colonialism in South Asia," MPRA Paper 119245, University Library of Munich, Germany, revised 21 Nov 2023.
    9. Hasan, Amena, 2023. "Amalgamation of Commercial Banks in Bangladesh: A Study on its Impact and Implications," MPRA Paper 120830, University Library of Munich, Germany, revised 10 Mar 2024.
    10. Kayani, Umar & Hasnaoui, Amir & Khan, Maaz & Zahoor, Nadia & Nawaz, Farrukh, 2024. "Analyzing fossil fuel commodities' return spillovers during the Russia and Ukraine crisis in the energy market," Energy Economics, Elsevier, vol. 135(C).
    11. Chowdhury, Emon Kalyan, 2024. "Dual Disruptions: An Evaluation of the Economic Fallout from the COVID-19 Pandemic and Russia-Ukraine Conflict on Bangladesh's Economy and Stock Market," MPRA Paper 120762, University Library of Munich, Germany, revised 18 Apr 2024.
    12. Chowdhury, Emon Kalyan, 2024. "Capital Market Governance in Bangladesh: A Cornerstone for Growth," MPRA Paper 121664, University Library of Munich, Germany, revised 04 May 2024.
    13. Chowdhury, Emon, 2023. "The Impact of Commodity Market on the Economy of Developing Countries," MPRA Paper 119462, University Library of Munich, Germany, revised 05 Dec 2023.
    14. Silva, Buddhika & Hasan, Amena, 2023. "Beyond the Glass Ceiling: How Women Leaders Drive Innovation and Performance in Top Management," MPRA Paper 120388, University Library of Munich, Germany, revised 13 Oct 2023.
    15. Uluyol, Burhan & Hui Pu, Suan & Shaturaev, Jakhongir & Kanaparan, Geetha, 2023. "Cracking the Code of Market Secrets: A Deep Dive into Financial Anomalies," MPRA Paper 119039, University Library of Munich, Germany, revised 05 Oct 2023.
    16. Joise, Topu & Goenka, Narsimha & Wangyel, Sangay & Shaturaev, Jakhongir, 2023. "Transforming Mobility Exploring the Impact and Challenges of Intelligent Transportation Systems in Asia," MPRA Paper 118994, University Library of Munich, Germany, revised 11 Sep 2023.

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