COVID-19: Media coverage and financial markets behavior—A sectoral inquiry

Haroon, Omair; Rizvi, Syed Aun R.

doi:10.1016/j.jbef.2020.100343

Cited by 493 publications

(436 citation statements)

References 31 publications

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“…Goodell (2020) posits that COVID-19 affects economies, financial markets, firm financing and cost of capital and industries such as banking and insurance, governments, and the public. Accordingly, Haroon and Rizvi (2020) and focus on a different aspect of the pandemic by studying its psychological effects. In particular, the studies investigate sentiment generated by coronavirus-related news and reputational based contagion, that is the impact of the coronavirus outbreak on companies related to the term "corona", respectively.…”

Section: Introductionmentioning

confidence: 99%

Household Financial Decision Making Amidst the COVID-19 Pandemic

Yue

Korkmaz

Zhou

2020

Emerging Markets Finance and Trade

133

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This paper investigates the impact of the COVID-19 pandemic on household investment decisions using a novel survey conducted by the Survey and Research Center for China Household Finance. We use linear probability and probit models to analyze the effects of COVID-19 at the household level. Our results show that households who know someone infected with COVID-19 lose confidence in the economy. They are more likely to change their risk behavior and become risk-averse. Further, COVID-19 increases the probability that a household will change its investment portfolio. More specifically, it causes a 9.15% decrease in the total investment amount.

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Section: Introductionmentioning

confidence: 99%

Household Financial Decision Making Amidst the COVID-19 Pandemic

Yue

Korkmaz

Zhou

2020

Emerging Markets Finance and Trade

133

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“…As a last point about future research, we believe the current coronavirus (COVID-19) pandemic will have significant effects on predictability of exchange rates; see recent studies by Phan and Narayan (2020) and Iyke (2020) on how COVID-19 has impacted exchange rates. In addition, there is now an evolving literature showing that COVID-19 is influencing factors that are responsible for exchange rate predictability like, for instance, oil prices and to some extent stock returns (Haroon and Rizvi, 2020;Devpura and Narayan, 2020;Prabheesh et al 2020;Gil-Alana and Monge, 2020;Narayan, 2020;Liu et al 2020;Qin et al 2020;Huang and Zheng, 2020;and Iyke, 2020b;He, Sun, Zhang and Li 2020;He, Niu, Sun, and Li, 2020). Based on evidence reported in these studies, we predict that COVID-19 will also have an impact on the evolution of Indonesia's exchange rate.…”

Section: Discussionmentioning

confidence: 85%

Predictors of Exchange Rate Returns: Evidence From Indonesia

Fianto¹,

Laila²,

Sukmana³

et al. 2020

BEMP

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Using historical time-series data, we investigate Indonesia’s exchange rate return predictability. We employ nine predictors, namely stock price, gold price, oil price, commodity price, inflation, balance of payment, total exports, the US T-bill rate, and the US federal fund rate. With historical data, we fail to discover any evidence that these factors predict Indonesia’s exchange rate returns. However, we find that oil price, commodity price, inflation, and the US T-bill rate can significantly predict Indonesia’s exchange rate returns during the Asian financial crisis. Our findings key implication is that it is the external factors that dominate the evolution of Indonesia’s exchange rate, and inflation rate is the only domestic factor for policy makers to control.

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“…Moreover, an epidemic is likely to alter human psychology and behavior (Ali, Alam, and Rizvi 2020;Haroon and Rizvi 2020). Given the contagion effect of an epidemic, it is more likely for workers to become infected if their occupations require human interaction.…”

Section: Influence Of Epidemics On Labor Force Participation Ratementioning

confidence: 99%

The Response of the Labor Force Participation Rate to an Epidemic: Evidence from a Cross-Country Analysis

Xiao

2020

Emerging Markets Finance and Trade

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Coupled with data on the occurrence of historical epidemics, this study examines the impact of an epidemic on the labor force participation rate of the affected country. We find robust evidence that the outbreak of an epidemic alters human behavior and negatively affects the labor force participation rate. The negative impact could be attributed to cultural attitudes toward uncertainty avoidance. A country with a higher uncertainty avoidance index will suffer from a more significant decline in the labor force participation rate. The negative impact is more pronounced among males and younger workers in low-and middle-income countries.

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COVID-19: Media coverage and financial markets behavior—A sectoral inquiry

Cited by 493 publications

References 31 publications

Household Financial Decision Making Amidst the COVID-19 Pandemic

Household Financial Decision Making Amidst the COVID-19 Pandemic

Predictors of Exchange Rate Returns: Evidence From Indonesia

The Response of the Labor Force Participation Rate to an Epidemic: Evidence from a Cross-Country Analysis

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