Does Supporting Ukraine Pay Well? The Performance of Companies that Suspended Their Business in Russia
26 January 2023 @ 3:30 pm - 5:30 pm
Online Research Seminar
15:30 pm, Thursday, 26 January 2023
Using fresh data about US companies that announced they were suspending their business activities in Russia following the invasion of Ukraine, we test how their decision affected their prices and looking-forward volatility. We find that these firms, on average, experienced a reduction (increase) in their value (implied volatility). However, this reduction (increase) did not last more than one to two weeks. More in depth analysis shows variations across economic sectors following the announcement. In terms of returns, the energy sector benefited the most, technology was relatively stable, while consumer goods experienced the most decline in price. We explain the results using the classic financial paradigm and the counterbalancing impact of social responsibility.
About the speaker
Mahmoud Qadan is an assistant professor of f inance in the School of Business Administration at the University of Haifa. He received his PhD inFinance from the University of Haifa, Israel in 2011 and went on to a postdoc in Columbia University USA. In his short 10 year career he has already published a few dozen papers in diverse journals including Energy Economics, The North American Journal of Economics and Finance ,Journal of Empirical Finance and Finance Research Letters. His Google Scholar count exceeds 700 citations. His main research interests are asset pricing, the microstructure of capital markets, financial econometrics, and behavioral finance. Dr. Qadan has also won prizes for his teaching and research.