Market reactions to the arrival and containment of COVID-19: An event study
By Kim J. Heyden, Thomas Heyden. Finance Research Letters, 2020
255 citations recorded by the source corpus.
We study the short-term market reactions of US and European stocks during the beginning of the COVID-19 pandemic. Employing an event study, we document that stocks react significantly negatively to the announcement of the first death in a given country. While our results suggest that the announcements of country-specific fiscal policy measures negatively affect stock returns, monetary policy measures have the potential to calm markets. These reactions are either intensified or lessened by firm-specific characteristics such as tangible assets, liquidity, and institutional holdings.
Subfields: Accounting, Economics and Econometrics, Finance
View Paper: https://www.semanticscholar.org/paper/a36992ce30064826159a2a1d0734aa47e6fff4b4
How researchers see this paper
The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.
In Accounting
In Economics and Econometrics
In Finance
Citations in the corpus
- Does responsible investing pay during economic downturns: Evidence from the COVID-19 pandemic (2020, unknown): “…number of academic studies have examined the impact of the COVID-19 pandemic on the financial markets (see, e.g., Broadstock et al. 2020; Cepoi 2020; Folger-Laronde et al. 2020; Heyden & Heyden 2020; Rahman et al. 2020; Sakurai & Kurosaki 2020; Shehzad et al. 2020; Sherif 2020; Singh 2020).”
- Banking sector reactions to COVID-19: The role of bank-specific factors and government policy responses (2021, unknown): “According to Heyden and Heyden (2021), firm-specific characteristics such as tangibility, liquidity, and institutional holdings can mitigate the magnitude of the stock price reaction.”
- Rethinking financial contagion: Information transmission mechanism during the COVID-19 pandemic (2020, unknown): “The severity of COVID-19-induced market downturns (Ashraf, 2020); Heyden and Heyden, 2021); Zhang et al. (2020), along with their rapidity (Ali et al., 2020) has been well documented.”
- The effects of a “black swan” event (COVID-19) on herding behavior in cryptocurrency markets (2021, unknown): “, 2020a, 2020b), reaction and recovery of financial markets from the COVID-19 shock (e.g., Ashraf, 2020; Seven and Yilmaz, 2020; Heyden and Heyden, 2020; Mazur et al., 2020; Topcu and Gulal, 2020; Yarovaya et al., 2020c); predictability (Ciner, 2020); hedge funds performance (e.”
- Economic impact of government interventions during the COVID-19 pandemic: International evidence from financial markets (2020, background): “Though some studes such as Heyden and Heyden (2020), Shanaev et al. (2020) nd Zaremba et al.”