Impact of the novel coronavirus on stock market returns: evidence from GCC countries

Bahrini, Raéf; Filfilan, Assaf

doi:10.3934/qfe.2020029

Cited by 85 publications

(71 citation statements)

References 22 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Many studies are deal with the impact of COVID-19 on the financial markets, such as the impact on stock market returns and volatility (Al-Awadhi et al, Alhammadi, 2020;Albulescu, 2020;Ali et al, 2020;Ashraf, 2020bAshraf, , 2020cBahrini & Filfilan, 2020;Contessi & Pierangelo, 2020;Harjoto et al, 2020;Mazur, Dang, & Vega, 2020;Rababah et al, 2020;Thorbecke, 2020;Topcu & Gulal, 2020), market illiquidity (Baig et al, 2020), contagion effect (Okorie & Lin, 2020), government interventions or responses against COVID-19 (Ashraf, 2020a;Zaremba et al, 2021;Zaremba et al, 2020), cryptocurrencies (Conlon & McGee, 2020;Corbet, Larkin, & Lucey, 2020;Goodell & Goutte, 2020), tourism and leisure sectors (Chen et al, 2020;Ghosh, 2020), uncertainty (Jeris & Nath, 2020), social trust (Mazumder, 2020), dividends (Krieger & Mauck, 2020), and commodity prices (Corbet, Goodell, & Günay, 2020;Devpura & Narayan, 2020;Huang & Zheng, 2020;Salisu, Ebuh, & Usman, 2020).…”

Section: Literature Reviewmentioning

confidence: 99%

The Impact of News about Pandemic on Borsa Istanbul during the COVID-19 Financial Turmoil

Tan

2021

Türkiye İletişim Araştırmaları Dergisi

View full text Add to dashboard Cite

The COVID-19 pandemic, which emerged in December 2019 and then spread worldwide, has affected not only economic and social life but also the financial markets. It has left investors greatly panicked and affected their decisions. In this study, the effect of COVID-19 related news on Borsa Istanbul is analyzed using the panel quantile regression method. The study period is set between 10 March 2020 and 17 April 2020. The panic index, media hype index, fake news index, country sentiment index, infodemic index, and media coverage index created by the RavenPack data platform are used for the analysis. The impact of news, it was found, varies amongst the quantiles, and there exists an asymmetric dependence between the returns of Borsa Istanbul and COVID-19 related news. More efficient communication channels, the results indicate, should be used to alleviate the financial turmoil caused by

show abstract

Section: Literature Reviewmentioning

confidence: 99%

The Impact of News about Pandemic on Borsa Istanbul during the COVID-19 Financial Turmoil

Tan

2021

Türkiye İletişim Araştırmaları Dergisi

View full text Add to dashboard Cite

show abstract

“…It is thought that these figures reflect the pandemic very well and using the cumulative figures may be misleading. Moreover, a negative relationship between the pandemic indicators and the main indices is expected by considering recent studies (Adekoya and Kofi Nti 2020;Ahmed 2020;Al-Awadhi et al 2020;Ali, Alam, and Rizvi 2020;Ashraf 2020;Bahrini and Filfilan 2020;Baker et al 2020;Chowdhury and Abedin 2020;Corbet et al 2020;Engelhardt et al 2020;Erdem 2020;Gherghina, Armeanu, and Joldeș 2020;Kartal, Depren, and Kılıç Depren 2020;Liu et al 2020;Mazur, Dang, and Vega 2020;Narayan, Phan, and Liu 2020;Phan and Narayan 2020;Shehzad, Xiaoxing, and Kazouz 2020;Topcu and Gulal 2020;Zhang, Hu, and Ji 2020;Akhtaruzzaman, Boubaker, and Şensoy 2020a). However, there can be neutral nexus between the pandemic indicators and the main indices if the pandemic becomes very common and spreads to every country and it is perceived as a normal part of daily life.…”

Section: Literature Reviewmentioning

confidence: 99%

How Main Stock Exchange Indices React to Covid-19 Pandemic: Daily Evidence from East Asian Countries

Kartal

Depren

2020

Global Economic Review

View full text Add to dashboard Cite

This study investigates whether the Covid-19 and the financial indicators affect the main stock exchange indices of East Asian countries. Number of cases and deaths caused by Covid-19, uncertainty, volatility, foreign exchanges, and mobility are examined by using Quantile Regression and comparing the prepandemic and the pandemic periods. The results shows that (i) the indicators have a significant negative impact as expected;(ii) the impact of mobility and pandemic indicators has significance in the trend of the indices whereas they differentiate among countries; (iii) the impact of the variables is significantly differentiated from the low level to the high level.

show abstract

“…(V) Financial and Economic Activities: the outbreak of novel coronavirus negatively affects the global stock market index. It is crushed in many parts of the world, due to full travel restrictions, lockdowns, and other preventive measures, which directly hit the local and international businesses [ 24 ]. The study used ‘broad money supply’, as % of GDP and ‘GDP per capita’ in constant 2010 US$ as nearby proxies of financial activities (denoted by FACT) and economic activities (EACT), respectively, to assess the country’s economic and financial situation amid the coronavirus pandemic.…”

Section: Data Sources and Methodological Frameworkmentioning

confidence: 99%

Nationwide Lockdown, Population Density, and Financial Distress Brings Inadequacy to Manage COVID-19: Leading the Services Sector into the Trajectory of Global Depression

Anser

Peng

et al. 2021

Healthcare

View full text Add to dashboard Cite

The service industry provides distributive services, producer services, personal services, and social services. These services largely breakdowns due to restrictions on border movements, confined travel and transportation services, a decline in international tourists’ visitation, nationwide lockdowns, and maintaining social distancing in the population. Although these measures are highly needed to contain coronavirus, it decreases economic and financial activities in a country, which requires smart solutions to globally subsidize the services sector. The study used different COVID-19 measures, and its resulting impact on the services industry by using world aggregated data from 1975 through 2020. The study benefited from the Keynesian theory of aggregate demand that remains provided a solution to minimize economic shocks through stringent or liberalizing economic policies. The COVID-19 pandemic is more severe than the financial shocks of 2018 that affected almost all sectors of the globalized world, particularly the services sector, which has been severally affected by COVID-19; it is a high time to revisit economic policies to control pandemic recession. The study used quantiles regression and innovation accounting matrix to obtain ex-ante and ex-post analysis. The quantile regression estimates show that causes of death by communicable diseases, including COVID-19, mainly decline the share of services value added to the global GDP at different quantiles distribution. In contrast, word-of-mouth helps to prevent it from the transmission channel of coronavirus plague through information sharing among the general masses. The control of food prices and managing physical distancing reduces suspected coronavirus cases; however, it negatively affects the services sector’s value share. The smart lockdown and sound economic activities do not decrease coronavirus cases, while they support increasing the percentage of the services sector to the global GDP. The innovation accounting matrix suggested that smart lockdown, managing physical distancing, effective price control, and sound financial activities will help to reduce coronavirus cases that will further translate into increased services value-added for the next ten years. The social distancing will exert a more considerable variance error shock to the services industry, which indicates the viability of these measures to contained novel coronavirus over a time horizon. The study used the number of proxies to the COVID-19 measures on the service sector that can be continued with real-time variables to obtain more inferences.

show abstract

Impact of the novel coronavirus on stock market returns: evidence from GCC countries

Cited by 85 publications

References 22 publications

The Impact of News about Pandemic on Borsa Istanbul during the COVID-19 Financial Turmoil

The Impact of News about Pandemic on Borsa Istanbul during the COVID-19 Financial Turmoil

How Main Stock Exchange Indices React to Covid-19 Pandemic: Daily Evidence from East Asian Countries

Nationwide Lockdown, Population Density, and Financial Distress Brings Inadequacy to Manage COVID-19: Leading the Services Sector into the Trajectory of Global Depression

Contact Info

Product

Resources

About