Covid-19 impact on Latin and Asian stock markets

Abdelkafi, Inès; Romdhane, Youssra Ben; Loukil, Sahar; Zaarour, Fatma

doi:10.1108/mf-02-2022-0065

Cited by 4 publications

(3 citation statements)

References 57 publications

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“…Apart from increasing number of confirmed cases, the restrictions imposed by the US government on movement made the market more volatile (Harvey, 2020). Abdelkafi et al. (2022) analyzed the relationship between government actions and Covid 19 pandemic in 10 American and Latin countries.…”

Section: Literature Reviewmentioning

confidence: 99%

Strategic approach to analyze the effect of Covid-19 on the stock market volatility and uncertainty: a first and second wave perspective

Chowdhury

2022

JCMS

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PurposeThis paper aims to analyze the impact of Covid-19 on the stock market volatility and uncertainty during the first and second waves.Design/methodology/approachThis study has applied event study and autoregressive integrated moving average models using daily data of confirmed and death cases of Covid-19, US S&P 500, volatility index, economic policy uncertainty and S&P 500 of Bombay Stock Exchange to attain the purpose.FindingsIt is observed that, during the first wave, the confirmed cases and the fiscal measure have a significant impact, while the vaccination initiative and the abnormal hike of confirmed cases have a significant impact on the US stock returns during the second wave. It is further observed that the volatility of Indian and US stock markets spillovers during the sample period. Moreover, a perpetual correlation between the Covid-19 and the stock market variables has been noticed.Research limitations/implicationsAt present, the world is experiencing the third wave of Covid-19. This paper has considered the first and second waves.Practical implicationsIt is expected that business leaders, stock market regulators and the policymakers will be highly benefitted from the research outcomes of this study.Originality/valueThis paper briefly highlights the drawbacks of existing policies and suggests appropriate guidelines to successfully implement the forthcoming initiatives to reduce the catastrophic impact of Covid-19 on the stock market volatility and uncertainty.

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Section: Literature Reviewmentioning

confidence: 99%

Strategic approach to analyze the effect of Covid-19 on the stock market volatility and uncertainty: a first and second wave perspective

Chowdhury

2022

JCMS

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“…This finding supports the idea that government intervention contributes to heightened stock market activity. While government policies in America and Latin countries may have been effective in containing the spread of the virus, they may have also inadvertently resulted in negative economic consequences by generating uncertainty and instability for businesses and individuals (Abdelkafi et al 2023).…”

Section: Government Policy Response Through the Stringency Indexmentioning

confidence: 99%

Stock Market Performance during COVID-19 Pandemic: A Systematic Literature Review

FITRIANA,

SAPUTRA,

HALIM

2023

Theor. Pract. Res. Econom. Fields

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This study provides a comprehensive review using a systematic database to comprehend the pragmatic studies that examine the stock market performance during the COVID-19 pandemic. This study systematically searches and synthezises the results of stock market performance during COVID-19 to provide an overview of the current state of knowledge. The objectives of this study are (1) to investigate the impact of COVID-19 on stock market performance, (2) to analyse the reaction of the stock market during a pandemic, and (3) to identify the perspective and gaps for future research. This study employs a Systematic Literature Review (SLR) approach and follows the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) guidelines. The databases used are Scopus and Web of Science (WoS), covering a period of 2020 to 2023. The articles were identified using specific keywords and were screened based on predefined criteria. A total of 57 articles were included in this study for review. This study examined the impact of the COVID-19 pandemic on stock market returns and volatility. Also, the study examines the interconnectedness between global stock markets. In addition, it explored the potential of government response to mitigate the pandemic's effect on the stock market. The study found that the initial impact was felt in the short term and negatively impacted investor sentiment, but the stock markets began to stabilise and recover over time. The study's findings suggest that future research should not only concentrate on the short-term impact and correlation between the stock market and the pandemic but also their long-term impact.

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“…Abdelkafi et al [40] investigated the dynamic relationship between pandemics and government actions, such as government response rates and economic support packages. The authors used a panel dataset to analyze the effect of government actions on stock market returns.…”

Section: Economic Performance and Stock Market's Integrationmentioning

confidence: 99%

Economic Performance and Stock Market Integration in BRICS and G7 Countries: An Application with Quantile Panel Data and Random Coefficients Modeling

et al. 2022

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The interest in studies aimed at understanding the integration of the stock market with the economic performance of countries has been growing in recent years, perhaps driven by the recent economic crises faced by the world. Although several studies on the topic have been carried out, the results are still far from a meaningful conclusion. In this sense, this paper considered the dual objective of investigating whether there is significant variance in the economic performance of developed and emerging markets’ countries and whether the global risk factors are statistically significant in explaining the variations in their future economic performance over time. From a sample of (i) gross domestic products from BRICS and G7 countries (total of twelve countries), and (ii) returns of the risk factors of developed and emerging stock markets for the period 1993 to 2019, we applied longitudinal regression modeling for five distinct percentiles, and random coefficients modeling (RCM) with repeated measures. We found that risk factors explain the future economic performance, there is significant variation in economic performance over time among countries, and the temporal variation in the random effects of intercepts can be explained by RCM. The results of this study confirm that stock markets follow an integration process and that moderately integrated markets may have the same risk factors. Furthermore, considering that risk factors are related to future GDP growth, they act as proxies for unidentified state variables.

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Covid-19 impact on Latin and Asian stock markets

Cited by 4 publications

References 57 publications

Strategic approach to analyze the effect of Covid-19 on the stock market volatility and uncertainty: a first and second wave perspective

Strategic approach to analyze the effect of Covid-19 on the stock market volatility and uncertainty: a first and second wave perspective

Stock Market Performance during COVID-19 Pandemic: A Systematic Literature Review

Economic Performance and Stock Market Integration in BRICS and G7 Countries: An Application with Quantile Panel Data and Random Coefficients Modeling

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