What the study found
The study found that several firm characteristics were associated with a higher likelihood of divesting from Russia. These included larger firm size, higher sales in Russia, higher cash reserves, higher leverage, high Environmental, Social, and Governance (ESG, a score reflecting environmental, social, and governance performance) scores, and, for U.S. firms only, substantial advertising expenditures.
Why the authors say this matters
The authors conclude that their causal evidence is economically important. They suggest that the observed elasticities show meaningful changes in these firm characteristics are linked to changes in the probability of exiting the Russian market.
What the researchers tested
The researchers examined determinants of corporate divestment from Russia using a unique dataset of divestment decisions from firms operating in Russia. They analyzed firm size, Russian sales, cash, leverage, ESG score, and advertising expenditures.
What worked and what didn't
The study reports that larger firms, firms with higher Russian sales, higher cash reserves, and higher leverage were more likely to divest. Firms with high ESG scores were also more likely to exit, and advertising expenditures were associated with divestment for U.S. firms only. The abstract reports elasticities of 2.413 for firm size, 0.468 for Russian sales, 0.352 for cash, 0.477 for leverage, and 0.962 for Social ESG score.
What to keep in mind
The abstract does not describe the full study design, sample size, or specific limitations. The advertising result is stated only for U.S. firms, so it is not presented as a general finding for all firms.
Key points
- Larger firms were more likely to divest from Russia.
- Higher sales in Russia were linked to a greater chance of exiting.
- Higher cash reserves and higher leverage were associated with divestment.
- High ESG scores were associated with a greater propensity to exit the Russian market.
- Advertising expenditures were associated with divestment only for U.S. firms.
Disclosure
- Research title:
- Firm characteristics linked to divestment from Russia
- Authors:
- Helena Sarkodie, Michael O’Connor Keefe, Kwabena Boasiako
- Institutions:
- Heriot-Watt University Dubai, Manchester Metropolitan University, Victoria University of Wellington
- Publication date:
- 2026-03-07
- OpenAlex record:
- View
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