Does invasion Russia-Ukraine affect to global financial market? evidence from consumers’ staples sectors

Abstract

This study aims to comprehensively analyze the market reaction within the consumer staples sector towards the Russian invasion of Ukraine. With a sample size of 2376 companies operating in the consumer staples industry, the event study method utilizing cumulative abnormal return (CAR) is employed to measure market response. The findings reveal a significant negative impact of the invasion on the global consumer staples market, particularly in developed and emerging markets. All industries within the consumer staples sector exhibited adverse reactions both before and after the announcement, with the beverage and household product industry experiencing the most severe consequences compared to other sectors. Moreover, our study uncovers that NATO members showcased relatively lower reactions prior to the invasion but displayed stronger responses following the announcement. To the best of our knowledge, this research is the first to shed light on market reactions specifically within the consumer staples sector regarding this invasion. The implications of our findings hold relevance for policy makers, managers, and investors, guiding them in making informed decisions amidst wartime scenarios.

Keywords

• Market Reaction
• Russian-Ukraine Invasion
• Consumer Staples