Corporate Decision-Making in Geopolitical Crises: The Role of ESG Policies During the Russia-Ukraine Conflict

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School of Business | Bachelor's thesis
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Date

2023

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Mcode

Degree programme

Rahoitus

Language

en

Pages

25

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Abstract

I analyze the impact of Environmental, Social, and Governance (ESG) policies on multinational companies’ decision-making during the Russia-Ukraine conflict and the following stock market reactions. I present evidence that higher ESG scores significantly influence firms to discontinue operations in Russia, whereas Human Rights Scores do not. I also show that complete withdrawals from Russia experience a favorable market reaction, though these reactions are moderated for firms with higher ESG and Human Rights Scores.

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Thesis advisor

Kokkonen, Joni

Keywords

ESG, stock market reaction, geopolitical crisis, Russia, Ukraine

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