Financial Market Risks during the COVID-19 Pandemic

Haroon, Omair; Ali, Mohsin; Khan, Abdullah; Khattak, Mudeer Ahmed; Rizvi, Syed Aun R.

doi:10.1080/1540496x.2021.1873765

Cited by 52 publications

(24 citation statements)

References 45 publications

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“…The tourist industry is regarded to positively contribute to a country’s economic growth process through several channels, including the fact that it is a currency earning sector, that supports physical and human capital accumulation and those pushes (and employs) technology and innovation. At the same time, tourism stimulates other economic sectors, such as transportation, hospitality, and shopping, both directly and indirectly (Gao et al 2021 ; Haroon et al 2021 ; Pulido-Fernández and Cárdenas-García 2020 ). International tourism, in particular, is a source of foreign money that supports the procurement of capital goods and technology that may be employed in other manufacturing processes.…”

Section: Literature Reviewmentioning

confidence: 99%

The role of economic conditions and sustainable rural development on the sustainability of tourism development: evidence from China

Xue

Ananzeh³

et al. 2022

Environ Sci Pollut Res

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At present, tourism is counted among those industries which have gained global attention due to rapid growth. Hence, a constant diversification in terms of destination is needed in tourism development. The recent trends of industry highlight the demand of alternative tourism types, among which nature-related tourism appears to be an emerging concept. In this regard, the present article investigates the impact of economic conditions and sustainable rural development on the sustainability of tourism development in China. The current research has gathered secondary data from the World Bank from 1981 to 2020. The quartile autoregressive distributed lag model has been applied to test the association between the variables. The results revealed that GDP, inflation, FDI, exchange rate, energy use, gross savings, and sustainable rural development have a significant and positive association with the sustainability of tourism development in China. Findings offer managerial implications recommending the local government to focus on the sustainability of rural development and economic conditions that may lead to the implementation of tourism-related development projects. This study also guides the policymakers in establishing policies related to tourism development using different economic conditions and sustainable rural development.

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Section: Literature Reviewmentioning

confidence: 99%

The role of economic conditions and sustainable rural development on the sustainability of tourism development: evidence from China

Xue

Ananzeh³

et al. 2022

Environ Sci Pollut Res

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“…They have also shown that the same state or industry, the same stock price and size, and the investor's local preference further strengthen the return co-movements. Looking at Islamic stock markets, both Rizvi and Arshad (2018) and Haroon et al (2021) found that both Islamic and conventional indices follow a similar pattern over time. They further argue that the lower systematic risk of Islamic stocks could potentially provide diversification opportunities.…”

Section: Optimal Portfolio Size Across Different Capital Marketsmentioning

confidence: 98%

“…They further argue that the lower systematic risk of Islamic stocks could potentially provide diversification opportunities. Furthermore, Haroon et al (2021) argue that the lower idiosyncratic risk of Islamic indices could potentially provide diversification benefits. In addition, Hadhri (2021) argues that negative changes in oil prices could cause a significant increase in Islamic stocks prices.…”

Section: Optimal Portfolio Size Across Different Capital Marketsmentioning

confidence: 99%

How Many Stocks Are Sufficient for Equity Portfolio Diversification? A Review of the Literature

Zaimović

Omanovic

Arnaut-Berilo

2021

JRFM

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Using extensive and comprehensive databases to select a subset of research papers, we aim to critically analyze previous empirical studies to identify certain patterns in determining the optimal number of stocks in well-diversified portfolios in different markets, and to compare how the optimal number of stocks has changed over different periods and how it has been affected by market turmoil such as the Global Financial Crisis (GFC) and the current COVID-19 pandemic. The main methods used are bibliometric analysis and systematic literature review. Evaluating the number of assets which lead to optimal diversification is not an easy task as it is impacted by a huge number of different factors: the way systematic risk is measured, the investment universe (size, asset classes and features of the asset classes), the investor’s characteristics, the change over time of the asset features, the model adopted to measure diversification (i.e., equally weighted versus optimal allocation), the frequency of the data that is being used, together with the time horizon, conditions in the market that the study refers to, etc. Our paper provides additional support for the fact that (1) a generalized optimal number of stocks that constitute a well-diversified portfolio does not exist for whichever market, period or investor. Recent studies further suggest that (2) the size of a well-diversified portfolio is larger today than in the past, (3) this number is lower in emerging markets compared to developed financial markets, (4) the higher the stock correlations with the market, the lower the number of stocks required for a well-diversified portfolio for individual investors, and (5) machine learning methods could potentially improve the investment decision process. Our results could be helpful to private and institutional investors in constructing and managing their portfolios and provide a framework for future research.

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“…The impacts of the COVID-19 pandemic have been examined in the banking (Wang et al, 2021;Borri and Giorgio, 2022;Boubaker et al, 2022;Le et al, 2022a) as well as in the non-bank sector (Narayan, 2020;Haroon et al, 2021). Studies on the ESG-performance relationship under COVID-19, however, are still limited.…”

Section: Esg and Bank Performance Under Covid-19mentioning

confidence: 99%

The environment, social and governance (ESG) activities and profitability under COVID-19: evidence from the global banking sector

Yuen

Ngo

et al. 2022

JED

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PurposeThis study investigated the impacts of the environment, social and governance (ESG) and its components on global bank profitability considering the COVID-19 outbreak.Design/methodology/approachThis study used a system generalized method of moments (GMM) proposed by Arellano and Bover (1995) to investigate the relationship between ESG and bank profitability using an unbalanced sample of 487 banks from 51 countries from 2006 to 2021.FindingsThe findings generally found that ESG activities may reduce bank profitability, thus supporting the trade-off hypothesis that adopting ESG standards could increase bank costs while lowering profitability. In addition, there is a U-shaped relationship between ESG and bank profitability, suggesting that ESG activities can help improve bank performance in the long term. Such effect is the first time observed in the global banking sector. This study’s results are robust across different models and settings (e.g. developed vs developing countries, different levels of profitability, and samples with vs without US banks).Practical implicationsThis study provides empirical evidence to support the sustainable development policy which is implemented by many countries. It also provides empirical incentives for bank managers to be more ESG-oriented in their activities.Originality/valueThis study provides a better understanding of the roles of ESG activity and its components in the global banking system, considering the recent crises.

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Financial Market Risks during the COVID-19 Pandemic

Cited by 52 publications

References 45 publications

The role of economic conditions and sustainable rural development on the sustainability of tourism development: evidence from China

The role of economic conditions and sustainable rural development on the sustainability of tourism development: evidence from China

How Many Stocks Are Sufficient for Equity Portfolio Diversification? A Review of the Literature

The environment, social and governance (ESG) activities and profitability under COVID-19: evidence from the global banking sector

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