The Impact of Government Policy Responses to the COVID‐19 Pandemic and Brexit on the UK Financial Market: A Behavioural Perspective

Paterson, Audrey; Sakariyahu, Rilwan; Lawal, Rodiat; Alabi, Adedayo

doi:10.1111/1467-8551.12702

Cited by 10 publications

(3 citation statements)

References 51 publications

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“…IEA [49] made the case that more EPU has also risen in emerging markets, with increased uncertainty surrounding trade, currency, and regulation [44]. The report cites instances where the spike in EPU has been attributed to factors including the tension brought on by the Brexit decision [45], the US-China trade war, and the shifting political landscape in some nations [40]. Heightened political polarization, more frequent and severe natural disasters, and the expanding interdependence of the world's economies have caused economic uncertainty.…”

Section: Economic Policy Uncertainty In Selected Developed and Develo...mentioning

confidence: 99%

Analysis of the Impact of Economic Policy Uncertainty on Environmental Sustainability in Developed and Developing Economies

Huafang

Ali²,

Solangi

2023

Sustainability

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The literature on the impact of policy uncertainty on climate change has grown rapidly in recent years as policymakers and researchers have become increasingly concerned about the potential adverse effects of policy uncertainty on environmental sustainability. This study aims to investigate the impact of economic policy uncertainty (EPU), GDP per capita, renewable energy consumption (REC), and foreign direct investment (FDI) on environmental sustainability from the perspectives of the environmental Kuznets curve (EKC) and pollution halo/haven hypotheses. The research employs panel data analysis techniques, including panel corrected standard errors (PCSE) and generalized least squares (GLS), to analyze the data from a panel of 19 developed and developing countries from 2001 to 2019. The results reveal that EPU, GDP per capita, REC, and FDI significantly impact GHG emissions, contributing to climate change. The results of the study confirm a U-shaped EKC and pollution haven hypothesis in the selected economies. The findings of this study provide valuable insights for policymakers, as they highlight the need to consider the interplay between economic growth, foreign investment, and environmental policy in addressing climate change. The results also suggest that reducing policy uncertainty and promoting sustainable economic growth can mitigate the effects of climate change and ensure environmental sustainability.

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Section: Economic Policy Uncertainty In Selected Developed and Develo...mentioning

confidence: 99%

Analysis of the Impact of Economic Policy Uncertainty on Environmental Sustainability in Developed and Developing Economies

Huafang

Ali²,

Solangi

2023

Sustainability

View full text Add to dashboard Cite

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“…Sakariyahu et al, (2021) classify sentiment-based studies into five categories. They include market-based sentiment studies such as Baker & Wurgler (2007), Chen (2012), He et al (2019), Paterson et al, (2023). These studies demonstrate that market indices (e.g., trade volume, dividend, and liquidity) have informational content and provide signals to noise traders, who upon acting on these signals significantly disrupt stock price behaviour.…”

Section: Introductionmentioning

confidence: 99%

Chasing noise in the stock market: an inquiry into the dynamics of investor sentiment and asset pricing

Sakariyahu,

Paterson,

Chatzivgeri

et al. 2023

Rev Quant Finan Acc

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This study explores the inclusion of sentiment measures as a risk factor in asset pricing. Using UK market data for the period January 1993 to December 2020, we create a new sentiment variable, and construct both raw and clean sentiment indices from a principal component analysis of a variety of literature-acknowledged sentiment proxies. Essentially, the model estimations are categorized into two: first, the study documents the performance of the traditional pricing models on portfolios formed on different characteristics. Second, the study augments the first category by iterating sentiment variables into the model specification. The findings reveal that sentiment-augmented asset pricing models outperform the traditional models in explaining the excess returns of the portfolios. Furthermore, using Hansen & Jagannathan (1997) non-parametric model performance technique, we observe that the sentiment-induced models produce a small distance error compared to the traditional models, thus validating the use of sentiment measures in our pricing mechanism. It is therefore opined that extant asset pricing models may not be sufficient to explain market or pricing anomalies. Investors’ sentiment is an important systematic risk factor that possesses useful information, and by implication, market analysts and stakeholders must take serious cognizance of its propensities when forecasting risk-adjusted returns.

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“…In addition, the stability and predictability of stock markets are adversely affected by the high level of unemployment and the unprofitability of entire production sectors. An important role in this is played by the strengthening of interdependence between financial markets, caused by globalization processes in the world and the behaviour of investors who, in the decision-making process, are guided by the political statements of government officials, having limited access to market information [6].…”

Section: Introductionmentioning

confidence: 99%

The Influence of Information Transparency on the Value Indicators of Securities During the Crisis, Taking Into Account the Time Horizon of Investment

Hrytsenko¹,

Zakharkina²,

Zakharkin³

et al. 2023

ФКДПТП

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In the conditions of the turbulence of the stock markets, the low level of publicity and transparency of the published information and the increase of uncertainty regarding the future development of socio-economic processes, it is relevant to analyze the relationship between the risk and the yield of the securities of companies that were most vulnerable to the financial and economic crisis caused by the pandemic Covid-19. The purpose of the article is to analyze indicators of profitability, risk and variability based on the analysis of the value of shares of the analyzed companies in the pharmaceutical, aviation, transport and information industries of the economy in the conditions of financial and economic crisis and global uncertainty. In the process of analysis, it was determined that the most vulnerable to the consequences of the financial and economic crisis are the sectors of the economy that have experienced significant financial, economic, and personnel losses. It has been established that the lack of an adequate level of information transparency is one of the determining factors affecting the investment process and the possibility of obtaining stable returns in the long term. The indicators of the development of stock indices of the London and European stock exchanges FTSE 100 and Euronext were studied. A comparative analysis of the value of shares of industrial enterprises was conducted for the period from 2015 to the beginning of 2023. It has been found that with the growth of the time period of investment, the risk and volatility between the maximum and the minimum rate of return on shares are reduced to a minimum. The aviation sector is the most attractive from the point of view of investment, as the maximum return during the first month of investment is 67.22%. The least attractive, but at the same time the least risky sector of the economy is the pharmaceutical industry, where during the first month of investment it is possible to get 19.36% profit from the invested capital.

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The Impact of Government Policy Responses to the COVID‐19 Pandemic and Brexit on the UK Financial Market: A Behavioural Perspective

Cited by 10 publications

References 51 publications

Analysis of the Impact of Economic Policy Uncertainty on Environmental Sustainability in Developed and Developing Economies

Analysis of the Impact of Economic Policy Uncertainty on Environmental Sustainability in Developed and Developing Economies

Chasing noise in the stock market: an inquiry into the dynamics of investor sentiment and asset pricing

The Influence of Information Transparency on the Value Indicators of Securities During the Crisis, Taking Into Account the Time Horizon of Investment

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