Aye Corona! The contagion effects of being named Corona during the COVID-19 pandemic

Corbet, Shaen; Hou, Yang; Hu, Yang; Lucey, Brian M.; Oxley, Les

doi:10.1016/j.frl.2020.101591

Cited by 179 publications

(138 citation statements)

References 26 publications

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“…Albulescu (2020) noted that the report of new COVID-19 cases in China and outside China have a mixed effect on financial volatility. Corbet et al (2020) observed that the announcement of corona pandemic caused stock markets to exhibit negative returns and increased volatilities. Haroon and Rizvi (2020a) found a positive association between media induced panic and increased sense of uncertainly in financial markets, evidenced by volatility in indices of several industrial sectors.…”

Section: Literature Reviewmentioning

confidence: 99%

Corona Pandemic and Stock Market Behaviour: Empirical Insights from Selected Asian Countries

Mishra

2020

Millennial Asia

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On the onset of the year 2020, the unprecedented outbreak of novel coronavirus, initially as a human health epidemic and later as a global pandemic, has wobbled the economies of affected countries across the globe. The consequential unexpected occurrences of supply- and demand-side shocks forced the economies to trim down their growth prospects. The interplay of these shocks has generated spirals of downturns in all major economic sectors, including the financial sector in affected countries. Specifically, the stock markets immediately nosedived, following the outbreak of the global spread of coronavirus disease 2019 (COVID-19). Thus, we examine the behaviour of the selected Asian stock markets amid the huge uncertainties of the corona pandemic and find the occurrences of volatility clustering in these markets. Such volatility clustering primarily occurred, owing to the pessimistic and panic sentiments of investors, and the increase in the number of COVID-19 confirmed cases, changes in oil prices, and exchange rates were found to be significant in channelizing the fears and uncertainties of coronavirus pandemic to cause unexpected nosedives in Asian stock markets.

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Section: Literature Reviewmentioning

confidence: 99%

Corona Pandemic and Stock Market Behaviour: Empirical Insights from Selected Asian Countries

Mishra

2020

Millennial Asia

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“…(2020) indicate that the systemic risk among banks around the world and the density of the spillover network have never been as high – not even during the 2008 financial crisis – as they have been during the COVID-19 pandemic. Corbet et al. (2020a) document that the coronavirus pandemic particularly negatively affected companies with names related to coronavirus, even though these companies were unrelated to the virus.…”

Section: Introductionmentioning

confidence: 99%

Fear of the coronavirus and the stock markets

Lyócsa

Baumöhl

Výrost

et al. 2020

Finance Research Letters

181

123

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Highlights We model stock price variation around the world during the corona crash. We use Google search volume activity as a gauge of panic and fear. Search terms are specific to the coronavirus crisis. Our sample covers 10 stock market indices. Excess search volume predicts price variation during the corona crash.

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“…There are a number of avenues through which evidence sourced in financial markets can help to eradicate such concerns and opaque rumours. To date a number of substantial effects have been identified with regards to the contagion effects of COVID-19, particularly those evident in gold and cryptocurrency markets ( Corbet, Larkin, & Lucey, 2020 ); and side-effects relating to name association ( Corbet, Hou, Hu, Lucey, & Oxley, 2020 ). Otherwise, related research is quite sparse with the exception of that relating to control and continuity ( Kamradt-Scott, 2013 ; Kamradt-Scott, 2015 ; Sadique et al, 2007 ; Weiss, 2012 ), the effects of pandemics, as measured through swine flu of 2008/2009 on tourism ( Page, Song, & Wu, 2012 ), and tracing the conceptual entanglement of financial and biological contagion ( Peckham, 2013 ).…”

Section: Introductionmentioning

confidence: 99%

The influence of the COVID-19 pandemic on asset-price discovery: Testing the case of Chinese informational asymmetry

Corbet

Hou

et al. 2020

International Review of Financial Analysis

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The circumstances surrounding the outbreak of the COVID-19 pandemic have generated substantial international political strain as governments attempt to mitigate the widespread associated social and economic repercussions. One theory has focused on the potential for Chinese informational asymmetry. Using Chinese financial market data, we attempt to establish the scale and direction of information flows during multiple distinct phases of the development of the pandemic. Two specific results are identified. Firstly, the majority of domestically-traded Chinese stocks present evidence of significant information flows at a far earlier stage than internationally-traded comparatives, suggesting that domestic investors recognised the dangers associated with COVID-19 far in advance of the rest of the world. One potential explanation surrounds the view that the severity of domestically-reported Chinese news was not appropriately recognised by international investors. Secondly, while evidence of safe-haven and flight-to-safety behaviour is evident throughout traditional energy and precious metal markets, cryptocurrencies became informationally-synchronised with Chinese equity markets, indicating their use as an investor safe-haven. This is a particularly concerning outcome for international policy-maker and regulatory authorities due to the fragility of these developing markets.

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Aye Corona! The contagion effects of being named Corona during the COVID-19 pandemic

Cited by 179 publications

References 26 publications

Corona Pandemic and Stock Market Behaviour: Empirical Insights from Selected Asian Countries

Corona Pandemic and Stock Market Behaviour: Empirical Insights from Selected Asian Countries

Fear of the coronavirus and the stock markets

The influence of the COVID-19 pandemic on asset-price discovery: Testing the case of Chinese informational asymmetry

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