Please use this identifier to cite or link to this item:
https://doi.org/10.21256/zhaw-30648| Publication type: | Article in scientific journal |
| Type of review: | Peer review (publication) |
| Title: | The connections that bind : political connectivity in the face of geopolitical disruption |
| Authors: | Hartwell, Christopher Zadorozhna, Olha |
| et. al: | No |
| DOI: | 10.1016/j.intman.2024.101141 10.21256/zhaw-30648 |
| Published in: | Journal of International Management |
| Volume(Issue): | 30 |
| Issue: | 3 |
| Page(s): | 101141 |
| Issue Date: | 23-Mar-2024 |
| Publisher / Ed. Institution: | Elsevier |
| ISSN: | 1075-4253 1873-0620 |
| Language: | English |
| Subjects: | Political connectivity; Sanction; Geopolitics; Political risk; Russian invasion; Ukraine |
| Subject (DDC): | 320: Politics 658: General Management |
| Abstract: | While a firm can minimize its own political risk, there are idiosyncratic and country-specific risks that are more difficult to control. In particular, home country governments pursue their own foreign policies independently of business, forging international linkages with other countries in pursuit of tangible benefits. But what happens when a government forges connectivity to a country which exhibits volatility or generates geopolitical shocks? This paper examines this question by studying the response of European stock markets to the ongoing (since 2014) Russian invasion of Ukraine. Using a variety of metrics to measure political connectivity, we distinguish between anti-Russian governments and governments which are more favorable to Russia during this period, combining this connectivity data with a new database of sanctions and war-related events. Applying asymmetric GARCH, panel estimations, and event study methods, we find that the uncertainty caused by Russian aggression in Ukraine has harmed financial markets in countries such as Serbia and Hungary, countries which have willingly forged connections with Russia during this time. Consistently, our empirical results show that, by tying a country to another one via political means, politicians also have tied the fortunes of their capital markets to the success or failure of this partner. |
| URI: | https://digitalcollection.zhaw.ch/handle/11475/30648 |
| Fulltext version: | Published version |
| License (according to publishing contract): | CC BY 4.0: Attribution 4.0 International |
| Departement: | School of Management and Law |
| Organisational Unit: | International Management Institute (IMI) |
| Appears in collections: | Publikationen School of Management and Law |
Files in This Item:
| File | Description | Size | Format | |
|---|---|---|---|---|
| 2024_Hartwell-Zadorozhna_Political-connectivity-geopolitical-disruption.pdf | 1.9 MB | Adobe PDF |  View/Open |
Show full item record
Hartwell, C., & Zadorozhna, O. (2024). The connections that bind : political connectivity in the face of geopolitical disruption. Journal of International Management, 30(3), 101141. https://doi.org/10.1016/j.intman.2024.101141
Hartwell, C. and Zadorozhna, O. (2024) ‘The connections that bind : political connectivity in the face of geopolitical disruption’, Journal of International Management, 30(3), p. 101141. Available at: https://doi.org/10.1016/j.intman.2024.101141.
C. Hartwell and O. Zadorozhna, “The connections that bind : political connectivity in the face of geopolitical disruption,” Journal of International Management, vol. 30, no. 3, p. 101141, Mar. 2024, doi: 10.1016/j.intman.2024.101141.
HARTWELL, Christopher und Olha ZADOROZHNA, 2024. The connections that bind : political connectivity in the face of geopolitical disruption. Journal of International Management. 23 März 2024. Bd. 30, Nr. 3, S. 101141. DOI 10.1016/j.intman.2024.101141
Hartwell, Christopher, and Olha Zadorozhna. 2024. “The Connections That Bind : Political Connectivity in the Face of Geopolitical Disruption.” Journal of International Management 30 (3): 101141. https://doi.org/10.1016/j.intman.2024.101141.
Hartwell, Christopher, and Olha Zadorozhna. “The Connections That Bind : Political Connectivity in the Face of Geopolitical Disruption.” Journal of International Management, vol. 30, no. 3, Mar. 2024, p. 101141, https://doi.org/10.1016/j.intman.2024.101141.
Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.