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Does this count as an event study?
...investors are also unnerved by the aftermath of the five-day war in early August.
Russian shares have lost about a third of their value since hitting record highs in May. Russian and Western bank analysts polled by Reuters have cut forecasts for Russia's gold and foreign exchange reserves.
As much as $25 billion in foreign capital may have left Russia since the Georgia conflict started, they said: while their growth forecasts were little changed at 7.5 percent, the crisis sharply cut the liquidity of the banking system.
Here is the article. The pointer is from Matt Yglesias.
Posted by Tyler Cowen on September 3, 2008 at 01:12 PM in Current Affairs | Permalink
Comments
Great!
(Right?)
Posted by: Delirious at Sep 3, 2008 9:02:16 PM
This is missing some other factors. In particular, the Russian government targeted and destroyed Mechtel (NYSE: MTL) by alleging that the company had engaged in price fixing. I think some of this sell-off can also be attributed to investors -- many of whom are foreign -- realizing that the Russian government can selectively liquidate equities by accusing them of corruption. Remember Khordokovsy?
Posted by: Patrick at Sep 3, 2008 11:06:39 PM
Having some investors take their money out? Small potatoes
Getting yelled out by your impotent European neighbors? Amusing
Helping Saakashvilli hoist himself by his own petard? Like a dream come true.
Having everyone know that you are back in business as the regional hegemon? Priceless.
Posted by: tom at Sep 4, 2008 8:48:16 PM
