Influence of information appearance on Russian banks stock prices

Recent development of technology led to increased interest in financial markets because trading and investments are now much easier as they were 10 — 20 years ago. At the same time, banks are rather interesting in terms of potential investments because they are becoming more influencing in the modern economy being a universal provider of credits and acceptors of deposits. The main goal of this research is to evaluate the influence of different news appearance on the stock prices of Russian banks. The analysis was carried on 10 public banks by event study methodology with focus on two key events: news on key interest rate (rise, decline, staying the same) and on sanctions by the USA and EU, which affects the economy as a whole. The study reveals significant effects of sanctions on stock prices almost on all event windows and for both political agents: the USA and EU. At the same time, key interest rate news were more likely to be ignored by the market except -1;+1 day event window in case of rise and for all windows in case of staying the same.