The Financial Pandemic: COVID-19 and Policy Interventions on Rational and Irrational Markets

Shanaev, Savva; Shuraeva, Arina; Ghimire, Binam

doi:10.2139/ssrn.3589557

Cited by 34 publications

(40 citation statements)

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“…Heyden & Heyden (2020) and Shanaev et al (2020) also come to a similar conclusion that the government intervention measures such as social distancing, and containment measures will have a negative impact on financial market earnings. However, the above-mentioned research only reflects the market reaction in the short term.…”

Section: Conclusion IV Conclusionmentioning

confidence: 85%

The Impact of COVID-19 and Government Intervention on Stock Markets of OECD Countries

Yang

Deng

2021

Asian Economics Letters

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We study the impact of COVID-19 and various government interventions on the stock market returns of 20 OECD countries from February 1, 2020 to October 1, 2020. We find that stock market returns react significantly negatively to the increase in the number of confirmed cases. The governments' intervention measures, such as social distancing, testing and contact tracing policies, magnify the negative effect of COVID-19 on stock returns. Our findings have important policy implications.

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Section: Conclusion IV Conclusionmentioning

confidence: 85%

The Impact of COVID-19 and Government Intervention on Stock Markets of OECD Countries

Yang

Deng

2021

Asian Economics Letters

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“…The results are also largely consistent with past literature. For example, Heyden and Heyden (2020), Shanaev et al (2020) and Zaremba et al (2020) showed that government social distancing measures are counterproductive to economic activities. A recent study concluded that containment and stringency measures have had, on average, a very large negative impact on economic activity-equivalent to a loss of about 15 percent in industrial production over a 30day period following their implementation (Deb 2020).…”

Section: Discussionmentioning

confidence: 99%

Impacts of COVID-19 public measures on country-level trade flows: Global panel regression analysis

Szabo

Srisawasdi

Tsusaka

et al. 2021

Preprint

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As of 10 July 2021, there have been over 186 million cases of COVID-19 and more than four million died as a result of this disease. The COVID-19 outbreak has also contributed to tremendous global decline in trade flows. The rapid spread of COVID-19 and the measures implemented by governments to contain the pandemic have had serious consequences for the world's economies. While the pandemic has affected the international movement of people, goods and services, there is still limited systematic research regarding the possible associations between the COVID-19 measures on countries' international trade flows. To fill this gap, we conducted regression analysis based on country level time series data from the United Nations and World Bank datasets. The results of the random effects panel regression models show that, the country import and export values are positively affected by health-related policies, while there is a negative association between stringency measures and import and export values. More specifically, school closing, stay-at-home requirements, and testing policy measures were found to have significant negative effects on countries' trade values. In contrast, facial covering policies were found to have significant positive effects on countries' import, export and total trade values.

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“…Recently, Liu et al (2020) observed that the adverse effects of increased COVID-19 cases on stock market returns were mainly triggered by the investors' pessimistic sentiments on future returns and fears of uncertainties. Shanaev et al (2020) also added that the market sentiment does play a crucial role in explaining the economic and financial implications of the corona pandemic. Across the globe, corona pandemic has impacted economic activities, owing to domestic lockdowns and slowdown in the global trade and growth, which, in turn, generated spirals of uncertainties that transmitted the spillovers of COVID-19 impacts to domestic financial markets, mainly through the channels of finance and confidence.…”

Section: Literature Reviewmentioning

confidence: 99%

Corona Pandemic and Stock Market Behaviour: Empirical Insights from Selected Asian Countries

Mishra

2020

Millennial Asia

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On the onset of the year 2020, the unprecedented outbreak of novel coronavirus, initially as a human health epidemic and later as a global pandemic, has wobbled the economies of affected countries across the globe. The consequential unexpected occurrences of supply- and demand-side shocks forced the economies to trim down their growth prospects. The interplay of these shocks has generated spirals of downturns in all major economic sectors, including the financial sector in affected countries. Specifically, the stock markets immediately nosedived, following the outbreak of the global spread of coronavirus disease 2019 (COVID-19). Thus, we examine the behaviour of the selected Asian stock markets amid the huge uncertainties of the corona pandemic and find the occurrences of volatility clustering in these markets. Such volatility clustering primarily occurred, owing to the pessimistic and panic sentiments of investors, and the increase in the number of COVID-19 confirmed cases, changes in oil prices, and exchange rates were found to be significant in channelizing the fears and uncertainties of coronavirus pandemic to cause unexpected nosedives in Asian stock markets.

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The Financial Pandemic: COVID-19 and Policy Interventions on Rational and Irrational Markets

Cited by 34 publications

References 0 publications

The Impact of COVID-19 and Government Intervention on Stock Markets of OECD Countries

The Impact of COVID-19 and Government Intervention on Stock Markets of OECD Countries

Impacts of COVID-19 public measures on country-level trade flows: Global panel regression analysis

Corona Pandemic and Stock Market Behaviour: Empirical Insights from Selected Asian Countries

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