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

Blasco, Natividad (Universidad de Zaragoza) ; Casas, Luis (Universidad de Zaragoza) ; Ferreruela, Sandra (Universidad de Zaragoza)

Resumen: 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.

Idioma: Inglés

DOI: 10.1016/j.frl.2024.105365

Año: 2024

Publicado en: Finance Research Letters 63 (2024), 105365 [7 pp.]
ISSN: 1544-6123

Financiación: info:eu-repo/grantAgreement/ES/AEI/PID2022-136818NB-I00
Financiación: info:eu-repo/grantAgreement/ES/DGA/S11-23R-CEMBE

Tipo y forma: Article (Published version)

Área (Departamento): Área Economía Finan. y Contab. (Dpto. Contabilidad y Finanzas)