Feverish Stock Price Reactions to the Novel Coronavirus

Ramelli, Stefano; Wagner, Alexander F.

doi:10.2139/ssrn.3550274

Cited by 146 publications

(72 citation statements)

References 56 publications

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“…Furthermore, it shows that investors were too slow in adjusting to the severe impacts of Covid-19 which indicates an underreaction on the announcement day. These findings are in line with Ramelli and Wagner (2020a) who observed 'feverish' stock price movements during late February and beginning of March. Furthermore, the shift from China as the epicenter of the disease to Europe can be observed.…”

Section: Fig 1 Demonstrates the Correlation Of Abnormal Returns Of 26supporting

confidence: 92%

“…We also acknowledge the study of Abdullah et al (2020) that the number of cases and deaths could be predictive factors of stock returns during the COVID-19 outbreaks. Ramelli and Wagner (2020a) state that investors reacted to the outbreak and spread of Covid-19 in different phases and emphasize the concerns of investors about corporate debt and liquidity. In contrast, our study focuses on short-term stock market reactions to different PHEIC announcements on a global scope.…”

Section: Introductionmentioning

confidence: 96%

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This time is indeed different: A study on global market reactions to public health crisis

Schell

Mei

Huynh

2020

Journal of Behavioral and Experimental Finance

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Elsevier has created a COVID-19 resource centre with free information in English and Mandarin on the novel coronavirus COVID-19. The COVID-19 resource centre is hosted on Elsevier Connect, the company's public news and information website. Elsevier hereby grants permission to make all its COVID-19-related research that is available on the COVID-19 resource centre-including this research content-immediately available in PubMed Central and other publicly funded repositories, such as the WHO COVID database with rights for unrestricted research re-use and analyses in any form or by any means with acknowledgement of the original source. These permissions are granted for free by Elsevier for as long as the COVID-19 resource centre remains active.

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Section: Fig 1 Demonstrates the Correlation Of Abnormal Returns Of 26supporting

confidence: 92%

Section: Introductionmentioning

confidence: 96%

This time is indeed different: A study on global market reactions to public health crisis

Schell

Mei

Huynh

2020

Journal of Behavioral and Experimental Finance

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“…The media are dominated by communication suggesting that the coronavirus pandemic will result in recession. This seems a fairly obvious observation resulting from the growing number of infections in most countries, closing schools and promoting social distancing measures, as well as sharp declines on global stock exchanges (Ramelli & Wagner, 2020). However, there is a lack of reliable research and estimates allowing to predict the scale of the recession.…”

Section: Recession As a Results Of A Pandemicmentioning

confidence: 99%

Covid-19 Pandemic; Recession, Virtual Revolution Leading to De-globalization?

Sułkowski

2020

Journal of Intercultural Management

112

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Objective: The article is an attempt to make a diagnosis about the impact of the Covid-19 pandemic on global trends, including organizational processes in enterprises, and challenges for organization leaders in many areas. Issues such as recession phase in which the economy will find itself, de-globalization and the increase in virtualization of both the economy and entire societies are discussed in the article.Methodology: The research method is a review of the literature, not very extensive, on the subject. There is a lack of research on social and cultural consequences of Covid-19 pandemics, and at the same time we are experiencing a flood of media information. The author is aware that impact assessment is subject to uncertainty and that it must be multidimensional.Findings: The review of the literature, as well as reports from financial institutions, show that the economies of individual countries are entering a phase of stagnation and recession. This will probably lead to a global recession. The text indicates the sectors and types of enterprises that will be most affected by the changes. The article proves that governments’ attitude to health care functions may change, as well as the role of states and international financial institutions. Virtualization of communication seems to be an important change. It is difficult to answer the question whether a pandemic will affect globalization or de-globalization, government decisions at national level are significant, but they draw from international experience.Value Added: The article becomes an important voice on the impact of a pandemic on the functioning of the economy and globalization.Recommendations: A question was posed demanding further analyses: whether strengthening the central government would mean de-globalization tendencies. It seems that the virtualization of social and economic life will continue after the pandemic expires, which needs to be confirmed. The impact of the pandemic on the world should be the subject of many research studies in the future.

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“…One of the most striking phenomena seen during outbreaks and pandemics, directly linked to social distancing, is a marked reduction in the quantity, duration, and closeness of individuals' interactions outside of their closest circles of family or friends. [ 337 338 ] Subsequently, this reduction in social interaction leads to further significant economic slowing, including freezing of the so-called “gig economy.”[ 339 340 ] As financial markets attempt to price “fear and risk” into existing valuation structures, the behavior of global equity markets will likely fluctuate while attempting to account for “various unanticipated risks.”[ 341 342 ] Simple fear-based responses, such as “hoarding” of toilet paper in the US – a commodity with limited risk for disruption – illustrate a social reaction that is founded in fear, misinformation, and a general sense of individual and social loss of control. [ 343 ]…”

Section: H Uman and E Conomic Amentioning

confidence: 99%

The 2019–2020 novel coronavirus (severe acute respiratory syndrome coronavirus 2) pandemic: A joint american college of academic international medicine-world academic council of emergency medicine multidisciplinary COVID-19 working group consensus paper

Stawicki

Jeanmonod

Miller

et al. 2020

J Global Infect Dis

331

356

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What started as a cluster of patients with a mysterious respiratory illness in Wuhan, China, in December 2019, was later determined to be coronavirus disease 2019 (COVID-19). The pathogen severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2), a novel Betacoronavirus , was subsequently isolated as the causative agent. SARS-CoV-2 is transmitted by respiratory droplets and fomites and presents clinically with fever, fatigue, myalgias, conjunctivitis, anosmia, dysgeusia, sore throat, nasal congestion, cough, dyspnea, nausea, vomiting, and/or diarrhea. In most critical cases, symptoms can escalate into acute respiratory distress syndrome accompanied by a runaway inflammatory cytokine response and multiorgan failure. As of this article's publication date, COVID-19 has spread to approximately 200 countries and territories, with over 4.3 million infections and more than 290,000 deaths as it has escalated into a global pandemic. Public health concerns mount as the situation evolves with an increasing number of infection hotspots around the globe. New information about the virus is emerging just as rapidly. This has led to the prompt development of clinical patient risk stratification tools to aid in determining the need for testing, isolation, monitoring, ventilator support, and disposition. COVID-19 spread is rapid, including imported cases in travelers, cases among close contacts of known infected individuals, and community-acquired cases without a readily identifiable source of infection. Critical shortages of personal protective equipment and ventilators are compounding the stress on overburdened healthcare systems. The continued challenges of social distancing, containment, isolation, and surge capacity in already stressed hospitals, clinics, and emergency departments have led to a swell in technologically-assisted care delivery strategies, such as telemedicine and web-based triage. As the race to develop an effective vaccine intensifies, several clinical trials of antivirals and immune modulators are underway, though no reliable COVID-19-specific therapeutics (inclusive of some potentially effective single and multi-drug regimens) have been identified as of yet. With many nations and regions declaring a state of emergency, unprecedented quarantine, social distancing, and border closing efforts are underway. Implementation of social and physical isolation measures has caused sudden and profound economic hardship, with marked decreases in global trade and local small business activity alike, and full ramifications likely yet to be felt. Current state-of-science, mitigation strategies, possible therapies, ethical considerations for healthcare workers and policymakers, as well as lessons learned for this evolving global threat and the eventual return to a “new normal” are discussed in this article.

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Feverish Stock Price Reactions to the Novel Coronavirus

Cited by 146 publications

References 56 publications

This time is indeed different: A study on global market reactions to public health crisis

This time is indeed different: A study on global market reactions to public health crisis

Covid-19 Pandemic; Recession, Virtual Revolution Leading to De-globalization?

The 2019–2020 novel coronavirus (severe acute respiratory syndrome coronavirus 2) pandemic: A joint american college of academic international medicine-world academic council of emergency medicine multidisciplinary COVID-19 working group consensus paper

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