Focal Interest
Focal Interest
AI Summary of Peer-Reviewed Research

This page presents an AI-generated summary of a published research paper. The original authors did not write or review this article. [See full disclosure ↓]

Publishing process signals: STRONG — reflects the venue and review process. — venue and review process.

Firms with stronger finances and ESG scores were more likely to leave Russia

A person's hands writing on documents at a white desk in a modern office setting, with a computer monitor and keyboard visible in the background, suggesting a professional business work environment.
Research area:Economics, Econometrics and FinanceEconomics and EconometricsRussia and Soviet political economy

What the study found

The study found that several firm characteristics were associated with a greater likelihood of divesting from Russia. Larger firms, firms with higher sales in Russia, firms with more cash reserves, and firms with higher leverage were more likely to exit.

Why the authors say this matters

The authors conclude that their causal evidence is economically important. They suggest that the estimated effects help show which firm features are linked to a higher probability of exiting the Russian market.

What the researchers tested

The researchers examined the determinants of corporate divestment from Russia using a unique dataset of divestment decisions by firms operating in Russia. They analyzed firm size, Russian sales, cash reserves, leverage, ESG (Environmental, Social, and Governance) scores, and advertising expenditures for U.S. firms.

What worked and what didn't

The results indicated positive associations between divestment and firm size, Russian sales, cash, and leverage. Firms with high ESG scores were also more likely to exit, and higher advertising expenditures were associated with exit for U.S. firms only.

What to keep in mind

The abstract does not provide details about the study design beyond the dataset and the reported causal evidence. It also does not describe limitations beyond the scope of firms operating in Russia.

Key points

  • Larger firms were more likely to divest from Russia.
  • Higher Russian sales, cash reserves, and leverage were each associated with a greater likelihood of exit.
  • Firms with higher ESG scores were more likely to leave the Russian market.
  • Advertising expenditures were linked to exit for U.S. firms only.
  • The abstract reports economically important causal evidence and elasticities for the main variables.

Disclosure

Research title:
Firms with stronger finances and ESG scores were more likely to leave Russia
Authors:
Helena Sarkodie, Michael O’Connor Keefe, Kwabena Boasiako
Institutions:
Heriot-Watt University Dubai, Victoria University of Wellington, Manchester Metropolitan University
Publication date:
2026-03-07
DOI:
10.1016/j.iref.2026.105072
OpenAlex record:
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AI provenance: This post was generated by OpenAI. The original authors did not write or review this post.

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