Death and contagious infectious diseases: Impact of the COVID-19 virus on stock market returns

By Abdullah M. Al-Awadhi, Khaled Alsaifi, Ahmad M. Al-Awadhi, Salah Alhammadi. Journal of Behavioral and Experimental Finance, 2020

1,227 citations recorded by the source corpus.

This study investigates whether contagious infectious diseases affect stock market outcomes. As a natural experiment, we use panel data analysis to test the effect of the COVID-19 virus, which is a contagious infectious disease, on the Chinese stock market. The findings indicate that both the daily growth in total confirmed cases and in total cases of death caused by COVID-19 have significant negative effects on stock returns across all companies.

Subfields: Economics and Econometrics, Finance, Modeling and Simulation

View Paper: https://www.semanticscholar.org/paper/843c96e9234c02df1007e4da1139470f12603d2a

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Citations in the corpus

Country Responses and the Reaction of the Stock Market to COVID-19—a Preliminary Exposition (2020, background): “Some recent papers are Narayan (2020), Gil-Alana and Monge (2020), Liu, Wang, and Lee (2020), Zhang, Hu, and Ji (2020), Haroon and Rizvi (2020), Ali, Alam and Rizvi (2020), Al-Awadhi et al. (2020), Fu and Shen (2020), Qin, Zhang, and Su (2020), and Apergis and Apergis (2020). 2.”
Has financial attitude impacted the trading activity of retail investors during the COVID-19 pandemic? (2020, background): “and the impact of the COVID-19 outbreak (Al-Awadhi et al., 2020; Zhang et al., 2020).”
Impact of COVID-19 pandemic on stock markets: Conventional vs. Islamic indices using wavelet-based multi-timescales analysis (2021, background): “Al-Awadhi et al. (2020) showed that both cases and deaths of COVID-19 had significant negative impacts on the stock returns of all firms of the Chinese stock market.”
Did Bubble Activity Intensify During COVID-19? (2020, methodology): “In closing, we highlight that there is scarce literature on the exchange rate—COVID-19 nexus despite a large and growing literature on COVID-19 (see Al-Awadhi et al., 2020; Devpura & Narayan, 2020; Ertuğrul et al., 2020; Fu & Shen, 2020; Gil-Alana & Monge, 2020; Gu et al., 2020; Haroon & Rizvi, 2020”
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…”
The Outbreak of COVID-19 and Stock Market Responses: An Event Study and Panel Data Analysis for G-20 Countries (2020, background): “In the initial phase of academic research on COVID-19, studies conducted by Al-Awadhi et al. (2020), Liu et al. (2020), Ahmar and Val (2020) and Zhang et al. (2020) witnessed a negative impact of COVID-19 outbreak on stock markets.”
Pandemics and the Asia-Pacific Islamic Stocks (2020, background): “The study’s motivation has roots in the extant literature, which suggests a strong connection between the COVID-19 pandemic and conventional stocks (see, for example, Al-Awadhi et al., 2020; He et al., 2020; Phan & Narayan, 2020; Salisu & Akanni, 2020).”
The COVID-19 IMPACT on the ASIAN STOCK MARKETS (2020, background): “We also find several works that analyse the impact of COVID-19 on stock markets globally, such as Al-Awadhi et al. (2020), who find that the pandemic has negatively affected Chinese stock market returns.”
Flatten the Curve and Stock Market Liquidity – An Inquiry into Emerging Economies (2020, background): “Recent studies on the impact of COVID-19 on financial markets focus on returns, volatility and systematic risk (Al-Awadhi et al. 2020; Albulescu 2020; Apergis and Apergis 2020; Fu and Shen 2020; Gil-Alana and Monge 2020; Haroon and Rizvi 2020; Liu, Wang, and Lee 2020; Narayan 2020; Qin, Zhang, and…”
COVID-19 lockdowns, stimulus packages, travel bans, and stock returns (2020, neutral): “, 2020); stock market (see Lyócsa et al., 2020; Lyócsa and Molnár, 2020; Mishra et al. 2020; Zhang et al., 2020; Haroon and Rizvi, 2020; Ali et al., 2020; Al-Awadhi et al., 2020); corporate performance (Fu and Shen, 2020; Shen et al.”