Tetiana Guzenko

This paper explores market efficiency in the Ukrainian stock market to determine whether there are differences between traditional and ESG indices. Different data properties related to market efficiency are explored: persistence (R/S analysis is used for these purposes), stationarity (ADF tests), normality (Kolmogorov-Smirnoff, Anderson-Darling test, etc.), resistance to market anomalies (Day of the week effect, abnormal returns and patterns they generate are tested using parametrical and non-parametrical statistical tests), etc. Database includes daily data from 2 conventional Ukrainian stock market indices (UX and PFTS) and ESG index (WIG Ukraine) over the period 2015–2022. The following hypothesis is tested in this paper: ESG indices are more efficient than traditional ones. The findings suggest that there are no significant differences between traditional and ESG indices: they have the same persistence, stationarity, do not fit normal distribution and are not influenced by explored market anomalies. So, despite the fact that companies listed in the ESG index are more transparent and thus characterized by lower information asymmetry, they are more liquid and popular among investors, ESG index is not more efficient than traditional ones. This might be the result of unfair practices called “washing” aimed at signaling the active ESG involvement with actual absence of it. This means that many ESG companies are actually traditional. To prevent such practices, the ESG reporting regulation needs to be revised.

Acknowledgment
Alex Plastun gratefully acknowledges financial support from the Ministry of Education and Science of Ukraine (0121U100473).

The full-scale russian invasion and war in Ukraine have inflicted substantial damage on the Ukrainian economy across various sectors. During crises, a common phenomenon is a decline in market competitiveness. This paper seeks to investigate whether the war in Ukraine has resulted in a reduction of competitiveness in the Ukrainian insurance market. To assess this, a range of traditional measures of market concentration, as well as various statistical tests, were applied to three crucial indicators from the Ukrainian insurance market, namely, assets, insurance premiums, and insurance payments for the period from January 1, 2022 to July 1, 2023. The findings suggest that, despite substantial losses incurred by the Ukrainian insurance market due to the invasion, the competition in the market did not experience significant degradation. However, the existing trends indicating a propensity for increased market concentration are cause for concern and demand immediate attention from regulators to prevent the deterioration of the market. To prevent market degradation stemming from current trends, regulatory bodies like the National Bank of Ukraine should carefully monitor adverse developments. They ought to integrate commitments to ensure market competitiveness, complemented by specific quantitative metrics for oversight, into their strategic plans and concepts for the development of the insurance market. Given the persistent threat of russian bombing in Ukraine, a viable and promising direction involves the proactive adoption of digital services and products.

Acknowledgments
Alex Plastun gratefully acknowledges financial support from the Ministry of Education and Science of Ukraine (0121U100473).