Has Ebola Infected the Market: A Contagious Reaction to a (Media) Health Care Crisis?

Funck, Mary; Gutierrez, Jose A.

doi:10.2139/ssrn.2786001

Cited by 14 publications

(14 citation statements)

References 13 publications

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“…Results are consistent with Funck and Gutierrez (2018) and Ichev and Marin c (2018), who observe, in the Ebola case, that the outbreak events are overemphasised in the media and create sentiment effects. Ichev and Marin c (2018) find that the event effect is stronger for securities exposed to intense media coverage, concluding that media-driven pessimism and optimism, induced in that case by the Ebola outbreak events, can significantly influence investors' decision-making processes.…”

Section: Resultssupporting

confidence: 87%

Australian market response to COVID-19 as moderated by social media

Maia

Tommasetti

Macedo

2021

PAR

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Purpose Emerging as a black swan event that stifled the global economy, COVID-19 is the first social media (SM) pandemic. In an unsocial age due to social distancing, SM relevance is intuitively magnified during a pandemic. This study aims to investigate the direct and moderating impact of Twitter on the Australian stock market during the COVID-19 info-pandemic. Design/methodology/approach As a natural experiment, a time-series regression measures the effect of the COVID-19 virus, proxied by the active cases and the marginal impact of SM user attention and sentiment on the Australian stock market. Findings Results show that SM user attention and sentiment to COVID-19 related fear topics are significant in explaining market returns and in predicting their volatility. It demonstrates that SM plays a role between COVID-19 and Australian stock market performance by amplifying the pandemic impact. Originality The study goes beyond a purely empirical investigation of the catalyst (i.e. the pandemic), thus contributing to current theoretical debates on the impact of SM on investor behaviour. Practical implications Policymakers and market participants could benefit from the empirical findings of this research in the case of analogous epidemics.

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Section: Resultssupporting

confidence: 87%

Australian market response to COVID-19 as moderated by social media

Maia

Tommasetti

Macedo

2021

PAR

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“… Wang, Yang, and Chen (2013) also find that the SARS virus, along with other contagious diseases (H1N1, Dengue Fever and Enterovirus 71) in Taiwan, resulted in positive abnormal returns for biotechnology stocks. Funck and Gutierrez (2018) consider the impact of Ebola on the US stock market, finding that negative Ebola-related news had a negative impact on airline, cruise ship, and restaurant stocks in the short-term. The pharmaceuticals industry experienced positive returns on negative Ebola news days, potentially attributable to media reports that pharmaceutical firms were developing a cure.…”

Section: Literature Reviewmentioning

confidence: 99%

The impact and role of COVID-19 uncertainty: A global industry analysis

Szczygielski

Charteris

Bwanya

et al. 2022

International Review of Financial Analysis

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“…The Eni and REi were negatively impacted by the COVID-19 pandemic. The results for the consumer staples sector can be explained by the general panic-buying and stockpiling behavior, which led to an extraordinary increase in household expenditure on non-discretionary products such as food, beverage, household, and personal care: products that usually have a low-income elasticity of demand (Funck and Gutierrez 2016;Nicola et al 2020). For the industrial sector, although the aviation and industrial transportation industries were negatively impacted by the COVID-19 pandemic, the Australian government announced AUD 715 million of unconditional Australian airline relief through the Coronavirus Economic Response Package, in which a range of fees were waived in order to mitigate the negative impact of COVID-19 on this industry (Australian Government Fact Sheet 2020).…”

Section: Data and Empirical Analysismentioning

confidence: 99%

The Australian Stock Market’s Reaction to the First Wave of the COVID-19 Pandemic and Black Summer Bushfires: A Sectoral Analysis

Günay

Bakry

Al-Mohamad

2021

JRFM

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In this study, we investigated the impact of the first wave of the COVID-19 pandemic on various sectors of the Australian stock market. Market capitalization and equally weighted indices were formed for eleven Australian sectors to examine the influence of the pandemic on them. First, we examined the financial contagion between the Chinese stock market and Australian sector indices through the dynamic conditional correlation fractionally integrated generalized autoregressive conditional heteroskedasticity (DCC-FIGARCH) model. We found high time-varying correlations between the Chinese stock market and most of the Australian sector indices, with the financial, health care, information technology, and utility sectors displaying a decrease in co-movements during the pandemic. The Modified Iterative Cumulative Sum of Squares (MICSS) analysis results indicated the presence of structural breaks in the volatilities of most of the sector indices around the end of February 2020, but consumer staples, industry, information technology and real estate indices did not display any break. Markov regime-switching regression analysis depicted that the pandemic has mainly affected three sectors: consumer staples, industry, and real estate. When we considered the firm size, we found that smaller companies in the energy sector exhibited gradual deterioration, whereas small firms in the consumer staples sector experienced the largest positive impact from the pandemic.

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Has Ebola Infected the Market: A Contagious Reaction to a (Media) Health Care Crisis?

Cited by 14 publications

References 13 publications

Australian market response to COVID-19 as moderated by social media

Australian market response to COVID-19 as moderated by social media

The impact and role of COVID-19 uncertainty: A global industry analysis

The Australian Stock Market’s Reaction to the First Wave of the COVID-19 Pandemic and Black Summer Bushfires: A Sectoral Analysis

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