Coronavirus (COVID-19) — An epidemic or pandemic for financial markets

By Mohsin Ali, Nafis Alam, Syed Aun R. Rizvi. Journal of Behavioral and Experimental Finance, 2020

622 citations recorded by the source corpus.

The novel Coronavirus disease (COVID-19) has quickly evolved from a provincial health scare to a global meltdown. While it has brought nearly half the world to a standstill it has affected the financial markets in unseen ways by eroding a quarter of wealth in nearly a month. This paper investigates the reaction of financial markets globally in terms of their decline and volatility as Coronavirus epicentre moved from China to Europe and then to the US. Findings suggest that the earlier epicentre China has stabilized while the global markets have gone into a freefall especially in the later phase of the spread. Even the relatively safer commodities have suffered as the pandemic moves into the US.

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/1d02e8c54cbc69883aadde61c9438b5566c049b6

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Economics and Econometrics

1. K. Prabheesh
2. Pinglin He
3. Tao Li
4. B. N. Iyke
5. Yu Wei
6. Beixiao Pan
7. Fei Hou
8. Pengpeng Yue

In Finance

1. K. Prabheesh
2. Tao Li
3. Pinglin He
4. Yu Wei
5. B. N. Iyke
6. Fei Hou
7. Yulong Sun
8. Ying Zhang

Citations in the corpus

• Pandemic, Mobile Payment, and Household Consumption: Micro-Evidence from China (2020, background): “The coronavirus (COVID-19) outbreak in December 2019 attracted considerable media attention (Haroon and Rizvi 2020) and generated global panic (Ali, Alam, and Rizvi 2020), thereby causing much of the economy to halt (Narayan 2020).”
• Network analysis of global stock markets at the beginning of the coronavirus disease (Covid-19) outbreak (2020, neutral): “In a similar study, Ali et al. (2020) applied an EGARCH model to the stock markets of the 9 countries most affected by COVID19, concluding that stock markets deteriorated when the disease changed from an epidemic to a pandemic. Commodity markets also suffered when the pandemic moved into the US. Usi”
• COVID–19’s Impact on Stock Prices Across Different Sectors—An Event Study Based on the Chinese Stock Market (2020, background): “Ali, Alam, and Rizvi (2020) studied the impact of COVID-19 on different financial securities and compared the situation of China and other countries but paid less attention to industry heterogeneity.”
• Implications of COVID-19 Pandemic on the Global Trade Networks (2020, background): “However, recent studies on the impact of the COVID-19 pandemic have mostly focussed on financial markets (Ali, Alam, and Rizvi 2020; Apergis and Apergis 2020; Fu and Shen 2020; Gil-Alana and Monge 2020; Haroon and Rizvi 2020; Liu et al., 2020; Narayan 2020; Phan and Narayan 2020; Qin, Zhang., and…”
• Which Firm-specific Characteristics Affect the Market Reaction of Chinese Listed Companies to the COVID-19 Pandemic? (2020, background): “The influence of the COVID-19 pandemic on the financial market attracted great attention (Ali, Alam, and Rizvi 2020; Haroon and Rizvi 2020).”
• Household Financial Decision Making Amidst the COVID-19 Pandemic (2020, background): “Ali, Alam, and Rizvi (2020) investigate the global financial market reaction to the pandemic as its epicenter moved from China to Europe, and the U.S. Zhang, Hu, and Ji (2020) map the general patterns of country-specific and systemic risks in the global financial markets.”
• COVID-19: Structural Changes in the Relationship Between Investor Sentiment and Crude Oil Futures Price (2020, background): “The recent outbreak of the coronavirus (COVID-19) pandemic is not only threatening public health but also carries significant repercussions for the sustainability of the financial market (Ali et al., 2020). Crude oil futures is one of those financial products severely impacted by COVID-19. The volat”
• COVID‐19 impact, sustainability performance and firm value: international evidence (2021, neutral): “Ali et al. (2020) also examine the reaction of financial markets globally in terms of their decline and volatility.”
• Infectious disease pandemic and permanent volatility of international stock markets: A long-term perspective (2020, positive): “For example, Ali et al. (2020) find that China’s stock market presents a relatively smaller decrease in returns in both COVID-19 epidemic and pandemic periods while for the bigger economies such as the US, UK, Germany and South Korea the overall average volatility increases tremendously from epidemi”
• COVID-19: The Reaction of US Oil and Gas Producers to the Pandemic (2020, background): “The COVID-19 pandemic—which is caused by severe acute respiratory syndrome coronavirus 2 (SARS‐CoV‐2)—has halted economic activities globally (Iyke & Ho, 2020; Narayan, 2020; Phan & Narayan, 2020).(1) In this paper, we examine how oil and gas firms reacted to the COVID-19 pandemic. In theory, the im”
• Does the Indian Financial Market Nosedive because of the COVID-19 Outbreak, in Comparison to after Demonetisation and the GST? (2020, background): “A second strand of research to which our study relates examines the effect of pandemics on financial markets (Al-Awadhi et al. 2020; Ali, Alam, and Rizvi 2020; Apergis and Apergis 2020; Barro, Ursúa, and Weng 2020; Donadelli, Kizys, and Riedel 2017; Gil-Alana and Monge 2020; Gormsen and Koijen…”