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

Document Type

Journal Article

Publication Title

Finance Research Letters

Volume

45

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

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.

DOI

10.1016/j.frl.2021.102161

Access Rights

free_to_read

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