Work

Does war spread the herding effect in stock markets? Evidence from emerging and developed markets during the Russia-Ukraine war

Year: 2024

Type: article

Abstract: This paper investigates the influence of the Russia-Ukraine conflict on herding behavior in global stock markets. Examining MSCI World and MSCI Emerging indexes alongside Russia, the study explores imitation tendencies before the invasion, immediately after commencement of war, and during an extended war period. Findings reveal that emerging markets facing heightened geopolitical risk, either due to their proximity to the conflict or to commercial interests in energy markets, exhibit herding during the initial war phase. This analysis sheds light on the impact of geopolitical events on financial market dynamics, particularly in emerging economies.

Source: Finance research letters

DOI: 10.1016/j.frl.2024.105365

Authors: Natividad Blasco, Luis Casas, Sandra Ferreruela

Institutions: Universidad de Zaragoza, Universidad de La Rioja

Language: English

Topic: Financial Markets and Investment Strategies

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: hybrid

Estimated APC paid: $3,350