Valuation Effects of the Russia-Ukraine Conflict in 2022 : The Global Supply Chain View
Using an event study approach, we find significant valuation effects in a sample of Chinese listed firms following the outbreak of Russia-Ukraine conflict. Regression analysis further reveals that the involvement of global supply chain plays an important role in the shock transmission. Specifically, Chinese firms with supply chain linkages of the U.S. earn significantly lower returns, while linkages with Russia does not affect. Moreover, we find that the valuation effect of supplier and customer linkages is asymmetric