ArticleJournal of economics and business
How do equity markets react to COVID-19? Evidence from emerging and developed countries.
Article in Journal of economics and business. The graph could read no effect estimate from its abstract, so it casts no vote on the map. Cited by 24 papers.
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Who cites it
24 citing papers in PubMed, 198 citations in OpenAlex.
- COVID-19's influence on Karachi stock exchange: A comparative machine learning algorithms study for forecasting.Heliyon · 2024Article
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- Riding the waves: A study of retrun spillovers and inter-sector linkages in US equity markets during the COVID-19 pandemic.Heliyon · 2024Article
- Forecasting oil, coal, and natural gas prices in the pre-and post-COVID scenarios: Contextual evidence from India using time series forecasting tools.Resources policy · 2023Article
- COVID-19 and finance scholarship: A systematic and bibliometric analysis.International review of financial analysis · 2023Article
- The impact of the COVID-19 outbreak on Japanese shipping industry: An event study approach.Transport policy · 2023Article
- The sum of all SCARES COVID-19 sentiment and asset return.The Quarterly review of economics and finance : journal of the Midwest Economics Association · 2022Article
- Using machine learning to analyze the impact of coronavirus pandemic news on the stock markets in GCC countries.Research in international business and finance · 2022Article
- Analysis of risk correlations among stock markets during the COVID-19 pandemic.International review of financial analysis · 2022Article
- The effects of daily growth in COVID-19 deaths, cases, and governments' response policies on stock markets of emerging economies.Research in international business and finance · 2022Article
- Article
- Changes in social behavior and impacts of the COVID-19 pandemic on regional housing markets: Independence and risk.Journal of behavioral and experimental finance · 2022Article
- Global evidence of the COVID-19 shock on real equity prices and real exchange rates: A counterfactual analysis with a threshold-augmented GVAR model.Finance research letters · 2022Article
- Response of stock market volatility to COVID-19 announcements and stringency measures: A comparison of developed and emerging markets.Finance research letters · 2022Article
- How to calm down the markets? The effects of COVID-19 economic policy responses on financial market uncertainty.Research in international business and finance · 2022Article
- The dark side of globalization: Evidence from the impact of COVID-19 on multinational companies.Journal of international business studies · 2022Article
- Coronavirus pandemic impact on bank performance.Frontiers in psychology · 2022Article
- The COVID-19 pandemic, volatility, and trading behavior in the bitcoin futures market.Research in international business and finance · 2022Article
- Impact of government interventions on the stock market during COVID-19: a case study in Indonesia.SN business & economics · 2022Article
- Article
Corrections and comments
PubMed lists nothing against this paper. Absence here is not a guarantee, only a check that was made.
Authors and funding
4 authors at 3 institutions in 2 countries.
Funding
No grant is acknowledged in the PubMed record.
Abstract
Based on the supply of stock market returns hypothesis, we argue that the unprecedented adverse shock of COVID-19 on the countries' economic growth translates into a negative shock to the stock markets. According to the institutional theory, we also argue that the impact of COVID-19 in emerging countries is different from developed countries. Based on the overreaction hypothesis, we expect that the market reaction during the stabilizing period of COVID-19 spread is different from the market reaction during the infection period. Using high-frequency daily data across 53 emerging and 23 developed countries from January 14 to August 20, 2020, we find that COVID-19 cases and deaths adversely affect stock returns and increase volatility and trading volume. Cases and deaths affected stock returns and volatility in the emerging markets, while only cases of COVID-19 affected stock returns, volatility, and trading volume in the developed markets. COVID-19 cases and deaths are related to returns, volatility, and trading volume for emerging countries during the rising infection of COVID-19 (pre-April 2020), while cases and mortality rates are related to returns, volatility, and trading volume in developed countries during the stabilizing spread (post-April 2020). Therefore, the emerging markets' investors seem to react to COVID-19 cases and mortality rates differently from those in the developed markets across two different periods of COVID-19 infection.
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Registered trials
Read under generation 80e0d062 · epoch 390. Bibliography from PubMed, PubMed Central and OpenAlex; grants from NIH RePORTER; trial links from ClinicalTrials.gov; estimates, votes and beliefs from the OpenQuestion graph.