The impact of covid-19 pandemic on global financial markets: a qualitative analysis / El impacto de la pandemia del covid-19 en los mercados financieros globales: un análisis cualitativo

Ajayi, Richard A.; Aliyev, Fuzuli; Sarkhanov, Teymur

doi:10.34140/bjbv2n3-075

Cited by 3 publications

(2 citation statements)

References 3 publications

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“…Numerous instances of significant financial instability have occurred in the United States over time, including the 1987 stock market crash and the Great Financial Crisis or Great Recession of 2008-2009(Afonso & Blanco-Arana, 2022Vidal, 2021). On Monday, October 19, 1987, the Dow Jones Industrial Average experienced its largest one-day decline ever, falling 22.6% (Ajayi et al, 2020;Ludvigson et al, 2021). Popular explanations include the accelerating globalization of financial markets and financial innovations such as portfolio insurance and index futures.…”

Section: Uncertainty In the Usmentioning

confidence: 99%

Uncertainty Measures and Business Cycles: Evidence From the US

Chen,

Vitenu-Sackey,

Bathuure

2024

Sage Open

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Most of the macro-literature on uncertainty has focused on macro-uncertainty caused by real activity as a source of economic fluctuations. Economic uncertainty reduces total demand in the economy via a conventional channel that is associated with real option theory. Given the findings of the existing literature, financial uncertainty other than macroeconomic uncertainty matters more for business cycle fluctuations. This study seeks to answer the following questions: Is uncertainty the primary cause of the business cycle’s fluctuations? Alternatively, does it matter what kind of uncertainty exists? The research utilized the generalized linear model (GLM) and the Bayesian generalized linear model (BGLM) to analyze a dataset covering the time from July 1960 to April 2015 in the United States. Elevated levels of macroeconomic uncertainty, akin to real uncertainty, and economic policy uncertainty, as measured by news sources, demonstrate a counter-cyclical pattern in relation to business cycles. Low levels of uncertainty have a positive impact on business cycles, leading to an increase in industrial production. Conversely, high levels of uncertainty have a negative effect on business cycles, causing a decline in industrial output. We are of the opinion that high levels of macroeconomic uncertainty have a ripple effect on the entire economy, which may stifle investments, reduce consumption, and create unemployment, which is likely to influence labor participation. JEL Classification: D81, E23, E32, E44, G14.

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Section: Uncertainty In the Usmentioning

confidence: 99%

Uncertainty Measures and Business Cycles: Evidence From the US

Chen,

Vitenu-Sackey,

Bathuure

2024

Sage Open

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“…The Coronavirus has wreaked havoc on practically every aspect of society, including the economy and financial markets. The emergence of the virus has turned into one of the most serious risks to the world economy and financial markets [1]. Yang investigated the influence of the coronavirus outbreak on tourism, using the DSGE model, discovered that when the coronavirus outbreak reduces tourism consumption and health, welfare suffers [2].…”

Section: Introduction 11 Backgroundmentioning

confidence: 99%

Coronavirus Impact on the leading stock markets and IPOs Intention

L¹

2022

BCPBM

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The goal of this research report is to look into the impact of the coronavirus disease (COVID-19) on the stock markets of China and the United States, focusing on the major stock indices in both countries' stock markets while also looking at the performance of companies in various industries during the epidemic. Also, the impact of the epidemic on the IPOs status of firms in various industries, in order to determine which industries and companies are worth paying attention to during the epidemic. Methodology: Based on the S&P Global 100 closing price, a comparison and event study of index closing prices for the aforementioned countries during the COVID-19 pandemic and pre-pandemic. To that purpose, we utilised cross-sectional Mest and non-parametric Mann-Whitney U-tests to look at changes in major stock indexes during the pandemic, cross-sectional t-tests for sample analysis, and OLS (ordinary least the squares) market model to combine the market and industries to make conclusions. Data visualisation, financial indicator calculations, and a clear display of analysis results are required for the success of IPOs efforts. Findings: The study discovered that different industries reacted to the stock market in different ways. There was a positive link between the number of listed firms and their industry stock performance as the market size of the industry grew. Furthermore, different industries have varied reactions to the stock market, and the IPOs activities of companies in different industries will influence the stock market's future development path.Implication: COVID-19 has supported another set of tech industries, although first affecting a portion of traditional industries.Originality: During COVID-19, no research has been done to determine the impact of the stock market on IPOs activities in various industries.

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