Global evidence on early effects of COVID-19 on stock markets

Date
2021
Authors
Kapar, Burcu
Buigut, Steven
Rana, Faisal
Journal Title
Journal ISSN
Volume Title
Publisher
John Wiley and Sons Inc
Abstract
We use event study approach to assess the effects of the early stages of COVID-19 on global markets. A large sample of stock markets (63) covering all key global markets and regions is included. The findings indicate that the Wuhan lockdown induces negative spillover effects on markets in Europe, North America, and other global markets that have yet to introduce domestic restrictions and have minimal infections at the time. Increasing cases outside China particularly in Europe and the introduction of containment measures result in severe market decline. Our findings highlight the need for quick, globally coordinated response to contagious diseases. © 2021 University of New Orleans.
Description
This book chapter is not available at CUD collection. The version of scholarly record of this book chapter is published in Review of Financial Economics (2021), available online at: https://doi.org/10.1002/rfe.1156
Keywords
comparative analysis, COVID-19, event study, spillover, stock markets
Citation
Kapar, B., Buigut, S., & Rana, F. (2021). Global evidence on early effects of COVID-19 on stock markets. Review of Financial Economics. https://doi.org/10.1002/rfe.1156