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How stock markets reacted to COVID-19? Evidence from 25 countries.

ABSTRACT: The objective of this paper is to analyse how COVID-19 related government policies influenced stock markets. Of the 25 countries we consider, stock returns did not react to any of the three policies - the stimulus package, lockdown, and travel ban in 20% of countries. For around 48% of countries, the effect on returns was negative, due largely to the stimulus package and lockdown policies. Of the 13 countries that experienced a change in the cash rate, returns were negative for 46% of the markets. The travel ban had the least effect on stock returns.

SUBMITTER: Bannigidadmath D

PROVIDER: S-EPMC8856896 | biostudies-literature | 2022 Mar

REPOSITORIES: biostudies-literature

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How stock markets reacted to COVID-19? Evidence from 25 countries.

Bannigidadmath Deepa D Narayan Paresh Kumar PK Phan Dinh Hoang Bach DHB Gong Qiang Q

Finance research letters 20210524

The objective of this paper is to analyse how COVID-19 related government policies influenced stock markets. Of the 25 countries we consider, stock returns did not react to any of the three policies - the stimulus package, lockdown, and travel ban in 20% of countries. For around 48% of countries, the effect on returns was negative, due largely to the stimulus package and lockdown policies. Of the 13 countries that experienced a change in the cash rate, returns were negative for 46% of the market ...[more]

PMID: 35221817

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