Agenda

08 Ott 2025 12:15

Yuxin Zhou (Université de Lyon & Business school EMLYON)

Meeting Room 1, San Giobbe Economics Campus + online

Yuxin Zhou (Université de Lyon & Business school EMLYON) - ESG meets Geopolitics: Stock Returns during the Ukraine-Russia Conflict


Abstract:

Geopolitical events have emerged as critical drivers of financial market uncertainty. The recent Ukraine-Russia conflict, followed by an energy shortage, has had profound consequences on both financial and energy markets, emphasizing ESG as a corporate risk factor. This paper aims to explore the interplay between stock returns, geopolitical risk and the role of ESG during the Ukraine-Russia conflict. Employing an event study methodology complemented by a Difference-inDifference (DiD) analysis, the study finds a positive ESG-return relationship during the first quarter of the conflict, which subsequently dissipates, reverting to neutrality. Furthermore, this paper extends the explanations of Pedersen et al. (2021)'s E-CAPM and finds that firms with superiority in particular ESG pillars have inherent properties of high profitability and, more importantly, enhanced resilience to corporate-level geopolitical and energy risks. These attributes have contributed to their superior performance compared to low-ESG firms during the geopolitical turmoil. This study highlights ESG's critical role in enabling firms to better navigate the challenges posed by geopolitical and energy crises.

 

The seminar can be attended also remotely, connecting to ZOOM.

Link Zoom: bit.ly/insem-2425
ID riunione:  880 2639 9452
Passcode: InSem-2425

Lingua

L'evento si terrà in inglese

Organizzatore

Department of Economics (InSeminars)

Link

http://bit.ly/insem-2425

Cerca in agenda