The Invasion of Ukraine and Stock Returns
Master thesis
Permanent lenke
https://hdl.handle.net/11250/3119470Utgivelsesdato
2023Metadata
Vis full innførselSamlinger
- Studentoppgaver (Business) [1132]
Sammendrag
This master's thesis examines how Norway's stock market volatility is affected by the continuing invasion of Ukraine. Our study attempts to offer useful insights for investing strategies and decision-making by investigating the relationship between investor attention and market dynamics during times of international war. We examine weekly changes in stock returns using data from the financial markets, and we applied an abnormal search volume indexbased on the volume of searches for the term "Ukraina" in Google. The research adds to the body of knowledge, advances our knowledge of how geopolitical crises can impact financial markets, and has applications for investors, analysts, scholars and the general public. This study emphasizes the significance of considering geopolitical issues when analysing market risks and provides methods for mitigating investments in uncertain times. We aim to provide a framework for evaluating the effects of geopolitical events on financial markets, aiding stakeholders in navigating risks associated with geopolitical tensions. We can conclude that there is a correlation between stock returns for the 20 largest companies on the Oslo Stock Exchange and Google search results for the word Ukraine. Therefore, Google Trends search volume may be used as a proxy to determine stock returns in times of geopolitical conflict.