Russia-Ukraine Confrontation: How Does Affect Market Reaction And Stock Performance Of The Mining Subsector?

Abstract

This research aims to empirically demonstrate the divergence of capital market
responses measured by abnormal returns, trading volume, volatility of security
returns, and stock performance measured by returns in the mining subsector
listed on the IDX due to the Russia-Ukraine war. This research is vital because
geopolitical conflicts such as the Russia-Ukraine War affect financial markets,
especially commodity-dependent sectors, thus providing insights for investors
and policymakers in the face of uncertainty. Using an event study method for 10
days pre- and post-war, this research used 29 companies with paired sample ttests
in the hypothesis testing. This study is the first to combine the four variables
AR, TVA, SRV, and R to analyze the impact of the Russia-Ukraine conflict, thus
becoming a novelty in this research. This study revealed a significant change in
TVA. At the same time, no considerable divergence was found in AR, SRV, and R
in mining subsector companies listed on the IDX, both before and after the Russia-
Ukraine war.