COVID-19 and investor behavior

Ortmann, Regina; Pelster, Matthias; Wengerek, Sascha Tobias

doi:10.1016/j.frl.2020.101717

Cited by 127 publications

(108 citation statements)

References 18 publications

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“…Studying each sector separately can take care of the sector specific factors. Though many studies (Liu et al, 2020b;Mirza et al, 2020) apply event study approach to COVID-19 research, this paper applies OLS regression in line with Ortmann et al (2020) to analyse the impact of COVID-19 on stock market over a period of months.…”

Section: Methodsmentioning

confidence: 99%

“…Using different measures representing the COVID-19 pandemic, Alber (2020) investigated how the stock markets of six worst affected countries react to the pandemic, and the results indicate that stock market return showed more sensitivity to coronavirus cases rather than deaths while also being more impacted by cumulative cases than the new ones. On a different note, Ortmann et al (2020) focused on retail investor reaction to the COVID-19 pandemic. Regression analysis exposes that when the number of COVID-19 cases doubled, the trading intensity of investors jumped by 13.9%.…”

Section: Literature Reviewmentioning

confidence: 99%

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Indian Stock Market during the COVID-19 Pandemic: Vulnerable or Resilient?: Sectoral analysis

Shankar

Dubey

2021

OMEE

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This study examines the impact of COVID-19 pandemic on the performance of Indian stock market, measured by daily average returns and trading volume. The analysis is aimed at discovering the vulnerability of the general market as well as nine crucial sectors to the pandemic while also checking the impact on overall volatility in the market. The findings suggest that all the sectors followed a consistent pattern of being significantly impacted by the pandemic. However, the benchmark index remained resilient in the context of average returns. The entire market witnessed decreased returns and increased liquidity, which is explained by reduced volatility in the market.

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Section: Methodsmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Indian Stock Market during the COVID-19 Pandemic: Vulnerable or Resilient?: Sectoral analysis

Shankar

Dubey

2021

OMEE

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“…The literature in capturing the COVID-19 fear and investor behavior are very few. Ortmann et al (2020) used transactional level brokerage data of retail investors to analyze the investor behavior during COVID-19 times. Their study found that investors reduced the usage of leverage and increased their weekly trading intensity during COVID-19 times.…”

Section: Literature Reviewmentioning

confidence: 99%

COVID-19 fear index: does it matter for stock market returns?

Subramaniam

Chakraborty

2021

RBF

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PurposeThe purpose of this paper is to capture the investors' mood related to the COVID-19 pandemic and analyze its impact on the stock market returns.Design/methodology/approachTo capture the investor mood related to the COVID-19 pandemic, the authors construct a unique COVID-19 fear index based on the Search Volume Index (SVI) from Google Trends (http://www.Google.com/trends/) of the search terms related to COVID-19 words and phrases as revealed by Google and Internet dictionaries. The COVID-19 fear index was used to investigate its impact on the stock market returns.FindingsThe study finds a strong negative association between COVID-19 fear and stock returns. Unlike other studies, the relationship is persistent for a significant period. This relationship is not found to reverse in the following days. The results also highlight that COVID-19 fear strongly impacts the stock market. The sentiment persists for a significant period and is not reversed soon, unlike the regular times in earlier studies.Originality/valueThe study is among the very few studies that constructed COVID-19 fear index using several Google search terms and captured its impact on the stock market returns.

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“…As regards investing strategies over the SARS-CoV-2 crisis, Ortmann, et al [71] suggested that investors open more stock and index positions, but do not shift to safe-haven or perilous investments. Hence, Cheema, Faff and Szulczyk [20], Cheema, Faff and Szulczyk [21] advised that gold and silver lost momentum in favor of liquid and stable assets such as treasuries and the Swiss franc.…”

Section: Prior Research Regarding the Economic And Financial Consequementioning

confidence: 99%

Stock Market Reactions to COVID-19 Pandemic Outbreak: Quantitative Evidence from ARDL Bounds Tests and Granger Causality Analysis

Gherghina

Armeanu

Joldeș

2020

IJERPH

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This paper examines the linkages in financial markets during coronavirus disease 2019 (COVID-19) pandemic outbreak. For this purpose, daily stock market returns were used over the period of December 31, 2019–April 20, 2020 for the following economies: USA, Spain, Italy, France, Germany, UK, China, and Romania. The study applied the autoregressive distributed lag (ARDL) model to explore whether the Romanian stock market is impacted by the crisis generated by novel coronavirus. Granger causality was employed to investigate the causalities among COVID-19 and stock market returns, as well as between pandemic measures and several commodities. The outcomes of the ARDL approach failed to find evidence towards the impact of Chinese COVID-19 records on the Romanian financial market, neither in the short-term, nor in the long-term. On the other hand, our quantitative approach reveals a negative effect of the new deaths’ cases from Italy on the 10-year Romanian bond yield both in the short-run and long-run. The econometric research provide evidence that Romanian 10-year government bond is more sensitive to the news related to COVID-19 than the index of the Bucharest Stock Exchange. Granger causality analysis reveals causal associations between selected stock market returns and Philadelphia Gold/Silver Index.

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COVID-19 and investor behavior

Cited by 127 publications

References 18 publications

Indian Stock Market during the COVID-19 Pandemic: Vulnerable or Resilient?: Sectoral analysis

Indian Stock Market during the COVID-19 Pandemic: Vulnerable or Resilient?: Sectoral analysis

COVID-19 fear index: does it matter for stock market returns?

Stock Market Reactions to COVID-19 Pandemic Outbreak: Quantitative Evidence from ARDL Bounds Tests and Granger Causality Analysis

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