Ashraf Badar Nadeem
School of Finance, Jiangxi University of Finance and Economics, Nanchang 330013, China.
Res Int Bus Finance. 2020 Dec;54:101249. doi: 10.1016/j.ribaf.2020.101249. Epub 2020 May 23.
In this paper, we examine the stock markets' response to the COVID-19 pandemic. Using daily COVID-19 confirmed cases and deaths and stock market returns data from 64 countries over the period January 22, 2020 to April 17, 2020, we find that stock markets responded negatively to the growth in COVID-19 confirmed cases. That is, stock market returns declined as the number of confirmed cases increased. We further find that stock markets reacted more proactively to the growth in number of confirmed cases as compared to the growth in number of deaths. Our analysis also suggests negative market reaction was strong during early days of confirmed cases and then between 40 and 60 days after the initial confirmed cases. Overall, our results suggest that stock markets quickly respond to COVID-19 pandemic and this response varies over time depending on the stage of outbreak.
在本文中，我们研究了股票市场对新冠疫情的反应。利用2020年1月22日至2020年4月17日期间64个国家的每日新冠确诊病例和死亡人数以及股票市场回报数据，我们发现股票市场对新冠确诊病例的增长做出了负面反应。也就是说，随着确诊病例数量的增加，股票市场回报下降。我们进一步发现，与死亡人数的增长相比，股票市场对确诊病例数量的增长反应更为积极。我们的分析还表明，在确诊病例出现的早期以及最初确诊病例后的40至60天之间，市场的负面反应较为强烈。总体而言，我们的结果表明股票市场对新冠疫情反应迅速，且这种反应会随着疫情爆发阶段的不同而随时间变化。
