The 2008 global financial crisis and COVID-19 pandemic: How safe are the safe haven assets?

Cheema, Muhammad A.; Faff, Robert W.; Szulczyk, Kenneth R.

doi:10.1016/j.irfa.2022.102316

Cited by 71 publications

(49 citation statements)

References 48 publications

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“…A safe haven profile for gold, specifically, is also confirmed for both crises we are examining in this article by Dimitriou et al (2020) and Ji et al (2020), findings that are contracted by studies that depict a loss of trust in the asset (Sharzad et al, 2019;Cheema et al, 2020). Ji et al (2020) extend their study to foreign currencies, suggesting that most currencies fail to play the role of a safe haven, while Cheema et al (2020) support this nature for the US dollar during the 2008 crisis and the swiss franc for both 2008 and the pandemic. Cryptocurrencies and commodities (Bouri et al, 2021), as well as Islamic stock indices (Foglie and Panetta, 2020) have, ultimately, been compared in extensive literature reviews that confirm ambiguous and contradicting findings.…”

Section: Literature Reviewsupporting

confidence: 72%

“…Gold has been frequently found to function as a both a hedge and a safe haven (Baur and McDermott, 2010;Hood and Malik, 2013), other precious metals too present the characteristics of safe havens for different periods of time each when gold fails and depending on the institutional, economic and financial context (Lucey and Li, 2015). A safe haven profile for gold, specifically, is also confirmed for both crises we are examining in this article by Dimitriou et al (2020) and Ji et al (2020), findings that are contracted by studies that depict a loss of trust in the asset (Sharzad et al, 2019;Cheema et al, 2020). Ji et al (2020) extend their study to foreign currencies, suggesting that most currencies fail to play the role of a safe haven, while Cheema et al (2020) support this nature for the US dollar during the 2008 crisis and the swiss franc for both 2008 and the pandemic.…”

Section: Literature Reviewsupporting

confidence: 61%

“…(2020), findings that are contracted by studies that depict a loss of trust in the asset (Sharzad et al. , 2019; Cheema et al. , 2020).…”

Section: Literature Reviewmentioning

confidence: 97%

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2008's mistrust vs 2020's panic: can ESG hold your institutional investors?

Giakoumelou

Salvi

Bertinetti

et al. 2022

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PurposeThe authors compare two market collapse incidents, focusing on their role as turning points for ESG considerations among investors that do not fall under the SRI class. The authors draw from the signaling theory to posit that ESG performance acts as a buffer to retain institutional shareholders under stress conditions.Design/methodology/approachThe authors collect extensive data on institutional shareholdings and corporate performance during the pandemic and the 2008 financial crisis to examine the potential of ESG to act as a downward risk hedging mechanism. The authors test whether superior ESG scores function as insurance and resilience signals that lock investors in through times of high probability of divestments.FindingsFindings indicate that ESG weighs in investment decisions during economic downturn and poor returns. The nature of this positive relationship is not static but dynamic contingent on overall risk materiality considerations.Research limitations/implicationsThe authors update regulators, firms, investors and academics on ESG, risk and crisis management. The shifting materiality and the altering impact of ESG practices is our core implication, as well as limitation, in terms of metrics, temporal evolution and interaction with institutional factors, along with portfolio alpha and safe haven potential in ESG asset classes.Originality/valueThe authors extend current literature focusing on portfolio returns and firm valuations to highlight the role of ESG in shareholder retention during poor return periods. The authors further add to existing studies by examining the shifting materiality of ESG pillars during different crisis settings.

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Section: Literature Reviewsupporting

confidence: 72%

Section: Literature Reviewsupporting

confidence: 61%

See 1 more Smart Citation

2008's mistrust vs 2020's panic: can ESG hold your institutional investors?

Giakoumelou

Salvi

Bertinetti

et al. 2022

View full text Add to dashboard Cite

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“…Chemkha et al (2021) defend that gold is a weak safe haven and that Bitcoin cannot be a safe haven due to its volatility. Similarly, Cheema et al (2020) remark that gold and silver failed to maintain investors' wealth. According to them, the US Treasuries and Swiss Francs are key safe havens during Covid-19.…”

Section: A Brief Review Of the Related Literaturementioning

confidence: 99%

The Link between Asset Value and Fear Sentiment during Covid-19 Pandemic

Canöz

2022

Sosyoekonomi

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Bu makale, küresel ekonomiyi zayıflatan Covid-19 pandemi krizinde riskten korunma veya güvenli liman varlıkları olarak küresel finansal araçların rolünü yatırımcının korku hissiyatı perspektifiyle ilişkilendirerek araştırmaktadır. Buna bağlı olarak, küresel yatırımcının korku hissiyatını temsil eden VIX endeksindeki şokların, devam eden pandemi sırasında bazı yatırım varlıklarındaki şoklar üzerindeki etkilerini analiz etmektedir. Bu amaca ulaşmak için farklı varlık sınıflarından sekiz ana finansal araç, VIX endeksi ile birlikte test edilmektedir. Analiz, 156 haftalık bir zaman serisini kapsamakta ve değişkenleri simetrik ve zamanlar arası perspektiflerden tahlil etmektedir. Bulgular, en sağlam varlığın Amerikan Doları itibari para birimi olduğunu, ardından kısmen Euro ve altının geldiğini göstermektedir. BTC’nin ise kısa süreliğine sağlam durduğu söylenebilir.

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“…During and after the COVID-19 pandemic, consumers may need to immediately accept and use cryptocurrency as money for financial transactions at home to reduce physical interactions with others (Cheema et al, 2020). According to mentioned finding, Kim (2021) claimed that consumers' intention to accept and use Bitcoin should be studied, focusing more on the psychological aspect of money rather than its perceived technological aspects.…”

Section: Introduction and Theoretical Backgroundmentioning

confidence: 99%

Presence of Price Clustering and Psychological Barriers in Bitcoin Market

SIEBER¹

2021

AOUS

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In the last year, the market of Bitcoin experienced one of the most turbulent times of its existence. In the last year, there were bull markets, bear markets, and sideways markets. This paper deals with the most apparent virtual currency, Bitcoin and the evidence of price clustering and the presence of psychological barriers of investors. The primary objective of this paper is to find out if the last digit and last two digits of the maximum (or minimum) price of Bitcoin tend to cluster around digit nine (or zero). Paper uses price clustering to determine if the theory of behavioural finance also implies conditions of the Bitcoin market, namely if investors in Bitcoin tend to see the resistance line when the maximum price ends with digit nine and if the minimum price with last digit 0 signals the support line. Results of the 2191 observations showed robust results in terms of support line, however not so unambiguously in the case of resistance line. The paper suggests that Bitcoin is changing its reputation as a solely speculative asset and transforming into a long-term investment strategy.

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The 2008 global financial crisis and COVID-19 pandemic: How safe are the safe haven assets?

Cited by 71 publications

References 48 publications

2008's mistrust vs 2020's panic: can ESG hold your institutional investors?

2008's mistrust vs 2020's panic: can ESG hold your institutional investors?

The Link between Asset Value and Fear Sentiment during Covid-19 Pandemic

Presence of Price Clustering and Psychological Barriers in Bitcoin Market

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