The nexus between COVID-19 fear and stock market volatility

Abstract

This study described an empirical link between COVID-19 fear and stock market volatility. Studying COVID-19 fear with stock market volatility is crucial for planning adequate portfolio diversification in international financial markets. The study used AR (1) -GARCH (1,1) to measure stock market volatility associated with the COVID-19 pandemic. Our findings suggest that COVID-19 fear is the ultimate cause driving public attention and stock market volatility. The results demonstrate that stock market performance and GDP growth decreased significantly through average increases during the pandemic. Further, with a 1% increase in COVID-19 cases, the stock return and GDP decreased by 0.8%, 0.56%, respectively. However, GDP growth demonstrated a slight movement with stock exchange. Moreover, public attention to the attitude of buying or selling was highly dependent on the COVID-19 pandemic reported cases index, death index, and global fear index. Consequently, investment in the gold market, rather than in the stock market, is recommended. The study also suggests policy implications for key stakeholders.

Testing green fiscal policies for green investment, innovation and green productivity amid the COVID-19 era

“…NEO firms’ expenditure productivity is shaped by macroeconomic trends and firm-specific characteristics. Furthermore, the empirical findings reinforce the idea that clean energy companies will have a positive impact on the economy (Şanlisoy and Çi̇loğlu 2019 ; Li et al 2021a , b , c , d ). With unpredictable government regulations, the investment potential for renewable energy sources is restricted.…”

Assessing the mechanism of barriers towards green finance and public spending in small and medium enterprises from developed countries

“…The AHP allows for judgment inconsistency and gives a way to increase consistency (Saaty and Vargas 2001). (Mathiyazhagan et al 2013) Least payoff (2) (Govindan et al 2014), (Matus et al 2012) Very short financial incentives (3) (Huang et al 2020), (Li et al 2021c), and (Li et al 2021b) The high cost of the green system (4) (Hillary 2004) Hazardous wastes cost (5) (Govindan et al 2014), (Mathiyazhagan et al 2013) Marketing barriers (M_B)…”

Assessing the impact of green fiscal policies and energy poverty on energy efficiency

“…While fiscal policies are not intended to enhance environmental quality, their potential impact on environmental effectiveness and pollution levels must be assessed (Karpinska and Śmiech 2020;Othman et al 2020). The goal of this study is to examine the relationship between environmental quality and macroeconomic variables by examining how tax policies affect energy efficiency (Li et al 2021b;Primc and Slabe-Erker 2020). To do so, we utilize quarterly US economic statistics from 1973 to 2013.…”

“…Renewability is promoted through government incentives (Phimister et al, 2015). Federal and state support, on the other hand, aids renewable energy businesses in securing financing while increasing income streams and financial capital gaps for project viability (Li et al, 2021b). The market for financial institutions including industrial investment, lower lending rates, and operational and overall efficiency of renewables businesses is also signaled (Phimister et al 2015).…”