Firm Reaction to Geopolitical Crises: Evidence from the Russia‐Ukraine Conflict

IF 16.4 1区化学 Q1 CHEMISTRY, MULTIDISCIPLINARY

Accounts of Chemical Research Pub Date : 2023-10-26 DOI:10.1111/jfir.12354

Md Asif Ul Alam, Erik Devos, Zifeng Feng

引用次数: 0

Abstract

Abstract This paper investigates corporate announcements related to the Russia‐Ukraine conflict of S&P 500 firms. We observe that firms withdrawing from Russia or suspending operations possess higher cash levels. Additionally, firms with more cash seem to announce withdrawals or suspensions more promptly. These findings suggest that cash levels are pivotal in how firms respond to geopolitical events. While cash does not seem influential when firms announce donations due to the conflict, it does affect the speed of such announcements. Social media also appears to play a significant role. Examining investor reactions to donation or withdrawal/suspension announcements, we report negative returns surrounding these announcements. Our paper underscores the critical role of cash reserves (i.e., financial flexibility) in shaping firm reactions to geopolitical events. This article is protected by copyright. All rights reserved.

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对地缘政治危机的坚定反应:来自俄罗斯-乌克兰冲突的证据

摘要本文研究了标普500公司与俄乌冲突相关的公司公告。我们观察到，从俄罗斯撤出或暂停业务的公司拥有更高的现金水平。此外，拥有更多现金的公司似乎更迅速地宣布取款或暂停。这些发现表明，现金水平对企业如何应对地缘政治事件至关重要。虽然当公司因冲突而宣布捐款时，现金似乎没有影响力，但它确实影响了宣布捐款的速度。社交媒体似乎也发挥了重要作用。通过调查投资者对捐款或撤资/停牌公告的反应，我们报告了这些公告的负回报。我们的论文强调了现金储备(即财务灵活性)在塑造企业对地缘政治事件的反应方面的关键作用。这篇文章受版权保护。版权所有。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Accounts of Chemical Research 化学-化学综合

CiteScore

31.40

自引率

1.10%

发文量

312

审稿时长

2 months

期刊介绍： Accounts of Chemical Research presents short, concise and critical articles offering easy-to-read overviews of basic research and applications in all areas of chemistry and biochemistry. These short reviews focus on research from the author’s own laboratory and are designed to teach the reader about a research project. In addition, Accounts of Chemical Research publishes commentaries that give an informed opinion on a current research problem. Special Issues online are devoted to a single topic of unusual activity and significance. Accounts of Chemical Research replaces the traditional article abstract with an article "Conspectus." These entries synopsize the research affording the reader a closer look at the content and significance of an article. Through this provision of a more detailed description of the article contents, the Conspectus enhances the article's discoverability by search engines and the exposure for the research.