Artikel
Sanctions against Russian oligarchs also affect their companies
In February 2022, the EU Commission announced economic sanctions against Russian oligarchs. The goal was to exert pressure on the Kremlin: initially to stop deploying troops to the Donetsk and Luhansk regions and ultimately to end its attack on Ukraine. The present report investigates how these sanctions affect companies headed by Russian oligarchs. The empirical findings show that after sanctions are announced, the stock returns of companies with sanctioned oligarchs on their executive board were significantly lower than the stock returns of firms without sanctioned board members. This is due to, for example, signaling effects and legal and economic uncertainties. Investors may expect negative consequences for the companies with sanctioned oligarchs and therefore withdraw. Thus, personal sanctions can exert some economic pressure via the negative economic effects on firm value.
- Language
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Englisch
- Bibliographic citation
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Journal: DIW Weekly Report ; ISSN: 2568-7697 ; Volume: 12 ; Year: 2022 ; Issue: 21 ; Pages: 142-147 ; Berlin: Deutsches Institut für Wirtschaftsforschung (DIW)
- Classification
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Wirtschaft
Information and Market Efficiency; Event Studies; Insider Trading
Mergers; Acquisitions; Restructuring; Voting; Proxy Contests; Corporate Governance
Capitalist Systems: Political Economy
- Subject
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sanctions
stock market reaction
event study
Ukraine
Russia
war
- Event
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Geistige Schöpfung
- (who)
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Bremus, Franziska
Hüttl, Pia
- Event
-
Veröffentlichung
- (who)
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Deutsches Institut für Wirtschaftsforschung (DIW)
- (where)
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Berlin
- (when)
-
2022
- DOI
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doi:10.18723/diw_dwr:2022-21-1
- Handle
- Last update
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10.03.2025, 11:44 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the 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
- Artikel
Associated
- Bremus, Franziska
- Hüttl, Pia
- Deutsches Institut für Wirtschaftsforschung (DIW)
Time of origin
- 2022
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Motivations of Russian firms to invest abroad: how do sanctions affect Russia’s outward foreign direct investment?
Motivations of Russian firms to invest abroad: how do sanctions affect Russia’s outward foreign direct investment?
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EU Anti-Russian Sanctions (Restrictive Measures): Compliance with International Law
Passive, Aggressive or Creative? : Adjustment Strategies of Companies Affected by Sanctions
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