Arbeitspapier
Hawks and Doves: Financial market perception of Western support for Ukraine
Since the Russian invasion of Ukraine on February 24, 2022, the West has been intensively discussing its support strategy. Hawkish positions of strengthening Ukraine via armaments, financial resources, and sanctions against Russia compete with dovish views of avoiding further escalation of the military and geopolitical conflict. News from the war became a dominating factor for international politics and the world economy. In this paper, we analyse how international financial markets perceived this news, especially on Western positions. We create a comprehensive data set of news related to the war and measure reactions of five key financial markets. The results show that stronger support for Ukraine had a positive impact after the first weeks of the war when the Ukrainian position in the war improved, but a negative or at least less positive influence before. Thus, financial markets seem to have perceived support as a risk of further escalation threatening global economic activity in the first phase. However, a hawkish line was a positive signal for financial markets after the change in perceptions. The results also confirm that the war and escalation in general had harmful effects on international financial markets.
- Language
-
Englisch
- Bibliographic citation
-
Series: IOS Working Papers ; No. 398
- Classification
-
Wirtschaft
Information and Market Efficiency; Event Studies; Insider Trading
National Security and War
- Subject
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Conflict
Event Study
Financial Markets
News
Russia
Sanctions
Ukraine
- Event
-
Geistige Schöpfung
- (who)
-
Neuenkirch, Matthias
Repko, Maria
Weber, Enzo
- Event
-
Veröffentlichung
- (who)
-
Leibniz-Institut für Ost- und Südosteuropaforschung (IOS)
- (where)
-
Regensburg
- (when)
-
2023
- Handle
- Last update
-
10.03.2025, 11:42 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Neuenkirch, Matthias
- Repko, Maria
- Weber, Enzo
- Leibniz-Institut für Ost- und Südosteuropaforschung (IOS)
Time of origin
- 2023
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Hawks and doves: Financial market perception of Western support for Ukraine
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