Infected Markets: Novel Coronavirus, Government Interventions, and Stock Return Volatility around the Globe

Zaremba, Adam; Kizys, Renatas; Aharon, David Y.; Demir, Ender

doi:10.1016/j.frl.2020.101597

Cited by 513 publications

(573 citation statements)

References 36 publications

Supporting

Mentioning

456

Contrasting

Unclassified

Order By: Relevance

“…Salisu & Adediran, 2020;A.A. Salisu et al, 2020;Afees A. Salisu & Vo, 2020;Xiong et al, 2020;Zaremba et al, 2020;Zhang et al, 2020). In this literature, we come across only two studies that explore the dynamics of exchange rates visà-vis the pandemic.…”

Section: Introduction I Introductionmentioning

confidence: 99%

Did Bubble Activity Intensify During COVID-19?

Narayan

2020

Asian Economics Letters

123

View full text Add to dashboard Cite

In this note, we utilize hourly exchange rate data for Japanese Yen, Canadian dollar, European Euro and the British pound to search for possible bubble type behavior. We identify evidence that bubble activity characterizes all four exchange rates more so in the COVID-19 period. We also show that bubble activity intensified during the COVID-19 period, implying markets became relatively more inefficient compared to the pre-COVID-19 period.

show abstract

Section: Introduction I Introductionmentioning

confidence: 99%

Did Bubble Activity Intensify During COVID-19?

Narayan

2020

Asian Economics Letters

123

View full text Add to dashboard Cite

show abstract

“…Beirne and Fratzscher (2014) analyze "the drivers of sovereign risk for 31 advanced and emerging economies during the European sovereign debt crisis." Zaremba et al (2020) explore "the stringency of policy responses to the novel coronavirus pandemic in 67 countries around the world and demonstrate that nonpharmaceutical interventions significantly increase equity market volatility. "…”

Section: Introductionmentioning

confidence: 99%

Impact of the coronavirus pandemic crisis on the financial system in the eurozone

Itō

2020

J Corp Accounting Finance

View full text Add to dashboard Cite

The stress in the financial system in five eurozone countries (Germany, France, Italy, Portugal, and Spain) was not connected before the COVID-19 pandemic crisis. Credit default swap premiums were priced independently, not incorporating the sovereign risk of the eurozone as a whole. However, during the period of pandemic crisis, the stress was connected in five countries. The financial market was cautious about the increased fiscal deficit caused by massive spending in the pandemic crisis, fearing that the deficit might cause increased risk in the financial system of the eurozone as a whole. The symptoms of financial crisis sprouted after the pandemic crisis started. We need to monitor whether countermeasures taken by European Central Bank (ECB) and European Union (EU) contribute to the stability of financial system in the eurozone.

show abstract

“…Similarly, Ali et al (2020) report that, as the virus moved from epidemic to pandemic as well as from China to Europe and the US, panic in the stock markets increased. However, Zaremba et al (2020) demonstrate that it is the government interventions that increase the volatility in the stock markets.…”

Section: Literature Reviewmentioning

confidence: 99%

Pan(dem)ic Reactions in Turkish Stock Market: Evidence from share repurchases

Pirgaip

2020

Preprint

View full text Add to dashboard Cite

Share repurchases have been widely used in global markets for years for various purposes such as to pay out cash, to stabilize stock prices, and so on. However, their use has recently been challenged due to the economic and financial uncertainty imposed by the COVID-19 outbreak. Not only governments have put bans or restrictions on the repurchasing transactions but also some major companies themselves have suspended their buyback programmes to preserve cash. On the other hand, repurchase activity has manifested itself in Turkish capital markets somewhat unexpectedly under uncertain market conditions. This study is one of the first attempts to explore the impact of share repurchase transactions on stock returns in an emerging market severely hit by COVID-19. Event study analyses reveal that market reaction to repurchase activity in the aftermath of the pandemic declaration of March 11, 2020 was significantly positive. Moreover, short-term stock performance of repurchasing firms was far greater than that of their non-repurchasing peers. These results have important policy implications in terms of corporate payout decisions which have recently been challenged by the new coronavirus.

show abstract

Infected Markets: Novel Coronavirus, Government Interventions, and Stock Return Volatility around the Globe

Cited by 513 publications

References 36 publications

Did Bubble Activity Intensify During COVID-19?

Did Bubble Activity Intensify During COVID-19?

Impact of the coronavirus pandemic crisis on the financial system in the eurozone

Pan(dem)ic Reactions in Turkish Stock Market: Evidence from share repurchases

Contact Info

Product

Resources

About