The COVID-19 Outbreak and Affected Countries Stock Markets Response

By Haiyue Liu, A. Manzoor, Cangyu Wang, Lei Zhang, Zaira Manzoor. International Journal of Environmental Research and Public Health, 2020

769 citations recorded by the source corpus.

This paper evaluates the short-term impact of the coronavirus outbreak on 21 leading stock market indices in major affected countries including Japan, Korea, Singapore, the USA, Germany, Italy, and the UK etc. The consequences of infectious disease are considerable and have been directly affecting stock markets worldwide. Using an event study method, our results indicate that the stock markets in major affected countries and areas fell quickly after the virus outbreak. Countries in Asia experienced more negative abnormal returns as compared to other countries. Further panel fixed effect regressions also support the adverse effect of COVID-19 confirmed cases on stock indices abnormal returns through an effective channel by adding up investors’ pessimistic sentiment on future returns and fears of uncertainties.

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/d73ec753ae73394fda75a89cd95e803a55bb035f

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. Muhammad Jahangir Ali
2. L. Gil‐Alana
3. Gang Li
4. Haiyan Song

In Finance

1. Muhammad Jahangir Ali
2. L. Gil‐Alana
3. Gang Li
4. Haiyan Song
5. Christian L. E. Franzke

Citations in the corpus

• The COVID-19 IMPACT on the ASIAN STOCK MARKETS (2020, background): “(2020). The COVID-19 IMPACT on the ASIAN STOCK MARKETS.”
• The Outbreak of COVID-19 and Stock Market Responses: An Event Study and Panel Data Analysis for G-20 Countries (2020, background): “…and acquisitions, splits, stock dividends, bonus shares, amalgamation, etc. Numerous researchers use the event study methodology to study the impact of a non-corporate event such as the outbreak of the disease on stock markets (Chen et al., 2017, 2018; Liu et al., 2020; Pendell & Cho, 2013).”
• COVID‐19 impact, sustainability performance and firm value: international evidence (2021, positive): “…Ebola, SARS, avian flu, swine flu, MERS, enterovirus 71 (EV71), dengue fever and H1N1) on stock returns, mutual funds and firm performance (e.g., Wang et al., 2013; Macciocchi et al., 2016; Del Giudice and Paltrinieri, 2017; Chen et al., 2018; Baker et al., 2020a, 2020b; Liu et al., 2020a, 2020b).”