The impact of Covid-19 on Gig economy

The price of a stock rises or falls in relation to a number of different factors, including changes to the economy brought about by pandemics. A few studies have already identified the effect of the COVID-19 pandemic on the stock market. However, empirical evidence is lacking on changes in stock price performance of blockchain-based companies as a result of the COVID-19 pandemic. We use the event study approach to estimate stock expected returns by applying an asset pricing model over a thirty-day event window around the announcement on March 11, 2020 by the World Health Organization (WHO) regarding the outbreak of the coronavirus (COVID-19) as a global pandemic, using a sample of S&P Global 1200 companies. Overall, our results indicate more sensitivity in blockchain-based companies' stock prices to the COVID-19 pandemic compared to those of non-blockchain-based companies. Cumulative abnormal returns show that the stock price of blockchain-based companies recover losses slower than nonblockchain companies. Our findings are important for investors and shareholders for future pandemics and events.

Section: Discussionsupporting

confidence: 92%

Effects of the COVID-19 pandemic on stock price performance of blockchain-based companies

Kordestani

Pashkevich

Oghazi

et al. 2021

“…In the last decade, marvelous progress has been made in epidemiology; still, different infectious diseases represent significant challenges to modern societies (Jord a et al, 2020). Empirical evidence relates pandemics with loss of human lives, sufferings, and serious economic challenges and implications for developing and the developed world (McKibbin & Fernando, 2020;Umar et al, 2020). The recent pandemic COVID-19 originated in December 2019 from Hubei province, Wuhan city in China, has now spread throughout the world.…”

Section: Introductionmentioning

confidence: 99%

COVID-19 pandemic and unemployment dynamics in European economies

Dai

Ullah

et al. 2021

144

This study goal to scrutinize the influences of the COVID-19 pandemic on unemployment in five selected European economies. To this end, the study uses a Fourier causality test for the period of December-2019 to December-2020. In Z-test results, Germany, Spain, and the UK have a significant positive change in unemployment due to COVID-19. The finding shows that COVID-19 cases cause unemployment for Germany, Italy, and the UK. Moreover, in terms of deaths, COVID-19 also causes unemployment in Italy and UK. Overall, the study's outcomes highlight that the pandemic increases the unemployment rate robustly in the mostly European economies. That is one of the rare negative effects of the virus on the European labor market. Novel COVID-19 findings provide a reliable guide to the future policy implication for the labor market. An active labor market policy will be needed to be in front of the world urgently.

“…It is noteworthy that countries have maintained tariffs of up to 10 percent on the COVID-19 test Kits during the pandemic crises (Evenett, 2020;Umar et al, 2020). Such anti-trade policies have also discouraged effective and smooth trade flows.…”

Section: Resultsmentioning

confidence: 99%

COVID-19 and international trade: insights and policy challenges in China and USA

Zhang

Wang

Majeed

et al. 2021

Like the other spheres of economic activity, international trade is also a victim of the current Covid-19 pandemic. Therefore, taking this into consideration, this study examines the impact of the novel Covid-19 virus on international trade, by using monthly data from China and USA. For this purpose, we have referred to the novel Fourier causality test. The findings of the test show that there is a direct causal relationship between the Covid-19 related deaths and the exports and imports of China, while the Covid-19 cases do not have a causal relationship with the exports and imports of China in the pandemic. Moreover, the Covid-19 cases and deaths have a causal relationship with the exports and imports of USA. Thus, we found that there were heterogeneous effects experienced in both the countries. Based on these empirical findings, some policy implications have been suggested for the Chinese and USA economies.