The Impact of Russia’s Invasion of Ukraine on the Capital Markets from the CEE Countries

Abstract The price of stocks is a good indication investors’ expectations for the evolution capital markets, comprising their fears and hopes regarding future developments. information disruptive event such as military attack spreads rapidly across countries affecting perceptions causing them to sell target safer investments. scientific literature on topic growing lately due ongoing Russo-Ukrainian war its consequences. research paper investigates impact Russia’s invasion Ukraine markets from Central Eastern European region using study methodology. studies abnormal returns recorded by each market day (February 24, 2022), well cumulative 6-day, 11-day 16-day windows following attack. findings show that most sharp declines event-day, reaching negative return 10% February 24. For longer persisted through markets. highest were 6-day all considered incorporating bad news outbreak lost initial hope being disinformation or short-term Within 35 trading days invasion, 64% rebounded returned pre-attack level. However, 4 more than 200 with level lower one registered before invasion. contributes extending markets’ behavior during conflicts focusing neighboring countries.