Empirical Study on the Impact of Policy Events on Stock Market before and after Stock Market Disaster

Abstract

This paper studied the relationship between policies and stock market volatility. This paper used the volatility point discrimination method to identify the variance increase points of stock market volatility from 2014 to 2018. It finds out the policy events causing stock market fluctuations through the event research method. After regression analysis of index return and policy event return, index return volatility and policy return volatility, it is found that the impact of policy events before the shock of stock market is greater than that after the shock of stock market.

Impact of COVID-19 policy on stock prices of listed property companies

“…As an example for a study of events within a country, Caliskan and Najand's [16] study of the impact of metal price movements on capital markets may be mentioned. The following further examples can be quoted: The Zhang et al [17] study examines the impact of domestic policy changes on the stock market, and makes a comparative analysis of the two stages before and after the changes. Aris Andriyani and Aryani [18] used the event study method to study the capital markets' reaction to the 2016 US presidential election.…”