2020
DOI: 10.1016/j.frl.2020.101735
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Abstract: Highlights We model stock price variation around the world during the corona crash. We use Google search volume activity as a gauge of panic and fear. Search terms are specific to the coronavirus crisis. Our sample covers 10 stock market indices. Excess search volume predicts price variation during the corona crash.

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Cited by 153 publications
(117 citation statements)
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“…The increasing number of new cases and deaths related to COVID-19 has created a palpable fear and uncertainty among market participants, e.g., investors and analysts. A growing stream of literature analyzes the impact of the fear of infection and death related to the COVID-19 pandemic on global stock market performance, for example, fear and global stock market performances ( Lyocsa et al, 2020 ; Salisu & Akanni, 2020 ), fear and commodity price returns ( Salisu et al, 2020 ), death, panic, and the US equity market performance ( Baig et al, 2020 ), the reactions of stock prices in the airline and tourism industry during the COVID-19 period ( Carter et al, 2020 ), and the importance of social trust on firm performance during the pandemic ( Mazumder, 2020 ), among many others. However, very few studies have analyzed the impact of fear of the pandemic on IPO underpricing and post-initial performance.…”
Section: Introductionmentioning
confidence: 99%
“…The increasing number of new cases and deaths related to COVID-19 has created a palpable fear and uncertainty among market participants, e.g., investors and analysts. A growing stream of literature analyzes the impact of the fear of infection and death related to the COVID-19 pandemic on global stock market performance, for example, fear and global stock market performances ( Lyocsa et al, 2020 ; Salisu & Akanni, 2020 ), fear and commodity price returns ( Salisu et al, 2020 ), death, panic, and the US equity market performance ( Baig et al, 2020 ), the reactions of stock prices in the airline and tourism industry during the COVID-19 period ( Carter et al, 2020 ), and the importance of social trust on firm performance during the pandemic ( Mazumder, 2020 ), among many others. However, very few studies have analyzed the impact of fear of the pandemic on IPO underpricing and post-initial performance.…”
Section: Introductionmentioning
confidence: 99%
“…Their findings indicate that gold has been functioning as a safe haven asset during the pandemic. Lyocsa et al (2020) employed daily data over the 2 December 2019-30 April 2020 period to investigate the relationship between fear about COVID-19 and uncertainty in the U.S. S&P 500 and major stock market indices from nine other countries. They measured fear of the virus by examining Google searches for terms related to the virus and uncertainty by the daily variance of market returns.…”
Section: Introductionmentioning
confidence: 99%
“…The Covid-19 pandemic, which quickly spread globally, did not initially affect the stock market. But with the rapid increase in mortality the market began to react negatively (Ashraf 2020;Khan et al 2020;Lyócsa, Baumöhl, Výrost, & Molnár 2020). The coronavirus also triggered the decline in stock market prices especially following the World Health Organization (WHO) declaration of its pandemic status which led to negative abnormal returns in the market (Alali, 2020;Liu, Manzoor, Wang, Zhang, & Manzoor 2020).…”
Section: Literature Reviewmentioning
confidence: 99%