Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments September 1, 2022 erstellt
Description:
A newsworthy but popular wave emerged following Russia’s invasion of Ukraine: a wave of firms’ withdrawal from the Russian market. What was motivating companies to give up such a vast Russian market? Did they later receive rewards or punishments due to the withdrawal decision? Factors, including firms’ ESG score, market value, Q ratio, cash-flow/sales ratio, and long-term debt-to-book ratio, tell the story that the ESG activism and agency problem were two prominent reasons for the withdrawal. However, the exit showed little impact on firms’ value, implying the withdrawal is a feasible sanction for specific firms. Based on the data, even though firms’ market value could boost the positive financial rewards brought by the withdrawal decision in one day, it soon became a detrimental factor that hurt firms’ returns when focusing on the one-month effect