How stock markets reacted to COVID-19? Evidence from 25 countries

Abstract

The objective of this paper is to analyse how COVID-19 related government policies influenced stock markets. Of the 25 countries we consider, stock returns did not react to any of the three policies – the stimulus package, lockdown, and travel ban in 20% of countries. For around 48% of countries, the effect on returns was negative, due largely to the stimulus package and lockdown policies. Of the 13 countries that experienced a change in the cash rate, returns were negative for 46% of the markets. The travel ban had the least effect on stock returns.

Document Type

Journal Article

Date of Publication

3-1-2022

Volume

45

Publication Title

Finance Research Letters

Publisher

Elsevier

School

School of Business and Law

RAS ID

35853

Comments

Bannigidadmath, D., Narayan, P. K., Phan, D. H. B., & Gong, Q. (2022). How stock markets reacted to COVID-19? Evidence from 25 countries. Finance Research Letters, 45, 102161.

https://doi.org/10.1016/j.frl.2021.102161

Copyright

free_to_read

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Link to publisher version (DOI)

10.1016/j.frl.2021.102161