Dario Caldara, Mike McHenry, Matteo Iacoviello, Immo Schott
ABSTRACT We study the investment effects of the Russia–Ukraine war using a novel, text‐based measure of firm‐level exposure derived from earnings call transcripts. Combining this measure with financial statement data for over 6500 firms across 50 countries, we show that exposure to the conflict led to sizable and persistent declines in corporate investment. Firms that discussed the war in early 2022 invested significantly less than otherwise similar firms. The results hold across multiple empirical strategies and highlight the role of geopolitical risk in shaping firm behavior during global crises.