The COVID-19 Outbreak and Affected Countries Stock Markets Response

Liu, Haiyue; Manzoor, Aqsa; Wang, Cangyu; Zhang, Lei; Manzoor, Zaira

doi:10.3390/ijerph17082800

Cited by 703 publications

(742 citation statements)

References 34 publications

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“…Most recently, Liu et al (2020) investigated the impact of the COVID-19 outbreak on the most affected countries' stock markets using the event study method. They documented that the stock markets responded negatively to the COVID-19 outbreak, which had weakened their performance.…”

Section: Covid-19 and Stock Market Reactionmentioning

confidence: 99%

The Outbreak of COVID-19 and Stock Market Responses: An Event Study and Panel Data Analysis for G-20 Countries

Singh

Dhall

Narang

et al. 2020

Global Business Review

117

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This study examines the impact of the COVID-19 outbreak on the stock markets of G-20 countries. We use an event study methodology to measure abnormal returns (ARs) and panel data regression to explain the causes of ARs. Our sample consists of indices in G-20 countries. The observed window comprises 58 days post the COVID-19 outbreak news release in the international media, and the estimation window consists of 150 days before the event date. We find statistically significant negative ARs in the four sub-event windows during the 58 days. Negative ARs are significant for developing as well as developed countries. The findings of this study reveal that cumulative average abnormal return (CAAR) from day 0 to day 43, ranging from –0.70 per cent to –42.69 per cent, is a consequence of increased panic in the stock markets resulting from an increased number of COVID-19 positive cases in the G-20 countries. From day 43 to day 57, CAAR ranging from –42.69 per cent to –29.77 per cent indicates the recovery of stock markets after a major stock price correction due to COVID-19. Additionally, the results of panel data analysis confirm the recovery of stock markets from the negative impact of COVID-19.

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Section: Covid-19 and Stock Market Reactionmentioning

confidence: 99%

The Outbreak of COVID-19 and Stock Market Responses: An Event Study and Panel Data Analysis for G-20 Countries

Singh

Dhall

Narang

et al. 2020

Global Business Review

117

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“…This pandemic is having a serious effect on global economies. Every stock market in the world has been affected and the Asian countries have experienced more negative abnormal returns as compared to other countries (Liu et al, 2020;Topcu & Gulal, 2020;etc. ).…”

Section: Introduction I Introductionmentioning

confidence: 99%

The COVID-19 IMPACT on the ASIAN STOCK MARKETS

Gil-Alana

Claudio-Quiroga

2020

Asian Economics Letters

103

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In this note, we examine the impact that the COVID-19 crisis may have on the Asian stock markets by examining the statistical properties of three financial markets in Asia: namely, the Korean SE Kospi Index, the Japanese Nikkei 225, and the Chinese Shanghai Shenzhen CSI 300 Index. Using fractional integration methods, the results based on daily data indicate that mean reversion and thus transitory effects of shocks occur in the Nikkei 225 index. However, for the Kospi and Shanghai Shenzhen indices, this hypothesis is rejected, implying that shocks are permanent.

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“…Similarly, Liu, Manzoor, Wang, Zhang, and Manzoor (2020) assessed the short-term impact of the coronavirus epidemic on the stock market indices of the major affected countries, including Japan, Korea, Singapore, the United States, Germany, Italy and the United Kingdom, among others. By means of an event study, the results of the study proved that the COVID-19 epidemic has a negative effect on stock market returns in all countries, particularly Asian countries, which recorded more negative abnormal returns than other countries.…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

“…For our study, we chose the date of declaration of the state of health emergency by the Moroccan government as the event date, which is practically March 16, 2020 (trading day). Referring to related research (Buigut & Kapar, 2019;Liu et al, 2020) we defined the event window as 50 trading days (see Figure 1). We used Microsoft Excel as the analysis tool for the study data that were extracted via the Casablanca Stock Exchange website.…”

Section: Data and Descriptionmentioning

confidence: 99%

The Covid-19 Pandemic and the Moroccan Financial Market: An Event Study

Harabida¹,

Radi²

2020

International Journal of Applied Economics, Finance and Account

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The history of global health crises has been aggravated by the spread of the new coronavirus pandemic (Covid-19), which caused disruptions in the economic and financial systems of the various countries, particularly the financial markets. This paper examines the impact of the spread of the pandemic, in the Moroccan context, on its financial market from February 24, 2020 to May 5, 2020. We use the day of the outbreak of the state of health emergency in Morocco, March 16, 2020, as the day of the event. In order to evaluate the reaction of the prices of companies listed on the Casablanca Stock Exchange, we use the event study methodology which is based mainly on the calculation of the daily abnormal returns of each company, and cumulate them over an event window in order to test their statistical significance. Our conclusions confirm the negative influence of the Covid-19 pandemic on the Moroccan financial market. We find that the market reactions are more important on short event windows, especially on the days surrounding the date of the event, while the reaction is less important on long event windows.

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The COVID-19 Outbreak and Affected Countries Stock Markets Response

Cited by 703 publications

References 34 publications

The Outbreak of COVID-19 and Stock Market Responses: An Event Study and Panel Data Analysis for G-20 Countries

The Outbreak of COVID-19 and Stock Market Responses: An Event Study and Panel Data Analysis for G-20 Countries

The COVID-19 IMPACT on the ASIAN STOCK MARKETS

The Covid-19 Pandemic and the Moroccan Financial Market: An Event Study

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