2021
DOI: 10.21511/imfi.18(2).2021.03
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Spatial tale of G-7 and BRICS stock markets during COVID-19: An event study

Abstract: The unprecedented outbreak of COVID-19 has affected every aspect of the human life, be it health, social, or economic dimensions. The anxiety and uncertainty wobbled the economies of affected countries worldwide. This study attempts to quantify the impact of COVID-19 on the performance of major stock markets of G-7 nations vis-à-vis BRICS nations. An event study methodology is employed to capture the effect of the systematic event in the form of Buy and Hold Abnormal Returns (BHAR) and Average Buy and Hold Abn… Show more

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Cited by 16 publications
(5 citation statements)
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“…However, as was previously mentioned, the parameter estimate may be dominated by the longest constant positive yield phase, producing a positive gamma value. Our findings are in line with Ledwani et al, (2021), which demonstrates that the negative impact of Covid-19 has decayed at a faster rate in the Indian financial markets supporting the market correction postpanic nosedive. The market overreaction theory and market correction theory underlie the collapse and fast recovery of the markets.…”
Section: Table 4a: Egarch Resultssupporting
confidence: 88%
“…However, as was previously mentioned, the parameter estimate may be dominated by the longest constant positive yield phase, producing a positive gamma value. Our findings are in line with Ledwani et al, (2021), which demonstrates that the negative impact of Covid-19 has decayed at a faster rate in the Indian financial markets supporting the market correction postpanic nosedive. The market overreaction theory and market correction theory underlie the collapse and fast recovery of the markets.…”
Section: Table 4a: Egarch Resultssupporting
confidence: 88%
“…In line with the findings of Zhang et al (2020), the recent outbreak of the COVID-19 pandemic has wobbled uncertainty in the financial markets. However, Ledwani et al (2021) shred evidence for a faster market correction in economies like India after a negative shock. As a result, the Indian stock market tends to bounce back more quickly after negative shocks.…”
Section: Discussionmentioning
confidence: 99%
“…In addition, although the t-statistics and p-values of CAR and BHAR showed minimal differences in both (CAR and BHAR) results, this paper has chosen the BHAR values to depict the results of the different windows, since BHAR is considered mathematically superior to the values generated by CAR (Ledwani et al, 2021).…”
Section: Discussionmentioning
confidence: 99%