COVID-19 vs. Russia-Ukraine Crisis: Capital Market Response

Džafer Alibegović – Faculty of Economics and Business, Trg oslobođenja – Alija Izetbegović 1, Sarajevo 71000, Bosnia & Herzegovina

Nejra Hadžiahmetović – Faculty of Economics and Business, Trg oslobođenja – Alija Izetbegović 1, Sarajevo 71000, Bosnia & Herzegovina

Lejla Dedović – Faculty of Economics and Business, Trg oslobođenja – Alija Izetbegović 1, Sarajevo 71000, Bosnia & Herzegovina

Abstract: From the pure health crisis that countries faced at the very begin­ning of the COVID-19 pandemic, in later stages it led to the creation of multi­ple economic and financial vulnerabilities. When the world economies start­ed recovering from the pandemic negative impacts, Russia started its inva­sion of Ukraine. The study aims to add to the growing body of literature on the topic of crises caused by the COVID-19 and Russian–Ukraine war by ana­lyzing and comparing the volatility of the world’s leading stock market per­formance benchmarks in the pre-crisis and crisis periods. For the analysis, Levene’s test is used to check the homogeneity/heterogeneity of variances of stock market returns. Analysis shows that all indexes performed better in the Russian–Ukraine crisis compared to the COVID-19 crisis, i.e., the volatili­ty of returns of all indexes is significantly lower in the Russian-Ukraine crisis compared to the COVID-19 crisis.

7th International Scientific Conference – EMAN 2023 – Economics and Management: How to Cope With Disrupted Times, Ljubljana, Slovenia, March 23, 2023, SELECTED PAPERS, published by: Association of Economists and Managers of the Balkans, Belgrade, Serbia; ISBN 978-86-80194-70-7, ISSN 2683-4510, DOI: https://doi.org/10.31410/EMAN.S.P.2023

Creative Commons Non Commercial CC BY-NC: This article is distributed under the terms of the Creative Commons Attribution-Non-Commercial 4.0 License (https://creativecommons.org/licenses/by-nc/4.0/) which permits non-commercial use, reproduction and distribution of the work without further permission. 

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