COVID-19 lockdowns, stimulus packages, travel bans, and stock returns

By Paresh Kumar Narayan, D. Phan, Guangqiang Liu. Finance Research Letters, 2020

361 citations recorded by the source corpus.

This paper examines the effect of government responses of G7 countries to the coronavirus pandemic (COVID-19) on stock market returns. Using time-series data, we show that lockdowns, travel bans, and economic stimulus packages all had a positive effect on the G7 stock markets. However, lockdowns were most effective in cushioning the effects of COVID-19. Our results are robust to different measures of returns and controls for other factors of returns.

Subfields: Economics and Econometrics, Modeling and Simulation

View Paper: https://www.semanticscholar.org/paper/5dae01436a4f3310e3f4b4b9b27727dcf36569a1

Citations in the corpus

• The nexus between COVID-19 fear and stock market volatility (2021, neutral): “Firms can be given subsidies for taking on long-term employees; for example, they can be given income tax breaks or tax holidays to sustain their economic activities (Okorie & Lin, 2021).”