The role of ESG in the decision to stay or leave the market of an invading country: The case of Russia

Anup Basnet (1) , Emilios Galariotis (2) , Magnus Blomkvist (2)

1 UNIS - University of Surrey
2 Audencia Business School

We study firms' decisions to stay or leave the Russian market amid the invasion of Ukraine. Lower ESG scores increase the likelihood of keeping the Russian operations unchanged. Higher scores lead to less negative stock market reactions following complete exits.

Domaines: Economies et finances; Gestion et management

Anup Basnet, Emilios Galariotis, Magnus Blomkvist. The role of ESG in the decision to stay or leave the market of an invading country: The case of Russia. Economics Letters, 2022, 216, pp.110636. ⟨10.1016/j.econlet.2022.110636⟩. ⟨hal-03689077⟩