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The role of ESG in the decision to stay or leave the market of an invading country: The case of Russia

Author

Listed:
  • Anup Basnet

    (UNIS - University of Surrey)

  • Emilios Galariotis

    (Audencia Business School)

  • Magnus Blomkvist

    (Audencia Business School)

Abstract

We study firms' decisions to stay or leave the Russian market amid the invasion of Ukraine. Lower ESG scores increase the likelihood of keeping the Russian operations unchanged. Higher scores lead to less negative stock market reactions following complete exits.

Suggested Citation

  • Anup Basnet & Emilios Galariotis & Magnus Blomkvist, 2022. "The role of ESG in the decision to stay or leave the market of an invading country: The case of Russia," Post-Print hal-03689077, HAL.
    • Handle: RePEc:hal:journl:hal-03689077
    DOI: 10.1016/j.econlet.2022.110636
    Note: View the original document on HAL open archive server: https://hal.science/hal-03689077
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    References listed on IDEAS

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    Cited by:

    1. Silva, Thiago Christiano & Wilhelm, Paulo Victor Berri & Tabak, Benjamin Miranda, 2023. "Trade matters except to war neighbors: The international stock market reaction to 2022 Russia’s invasion of Ukraine," Research in International Business and Finance, Elsevier, vol. 65(C).
    2. Marcus Biermann & Elsa Leromain, 2023. "The indirect effect of the Russian-Ukrainian war through international linkages: early evidence from the stock market," CEP Discussion Papers dp1899, Centre for Economic Performance, LSE.
    3. Hayakawa,Kazunobu & Kumagai,Satoru, 2022. "The trade effect of economic sanctions: evidence from the 2022 Russia-Ukraine conflict," IDE Discussion Papers 857, Institute of Developing Economies, Japan External Trade Organization(JETRO).

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