Your browser doesn't support javascript.
Government Fighting Pandemic, Stock Market Return, and COVID-19 Virus Outbreak
Emerging Markets Finance and Trade ; : 18, 2021.
Article in English | Web of Science | ID: covidwho-1211330
ABSTRACT
We investigate the effect of the governments' responses to fighting the COVID-19 pandemic on the returns in the stock market index. Panel data of 20 countries are used spanning January 2 to July 21, 2020, for the dynamic panel model. The results indicate that the overall government response, containment and health, and stringency indices have a significantly positive effect on stock market returns. Specifically, government policy responses of shutting down workplaces, canceling public events, restricting public gatherings and international travel, providing income support, and implementing fiscal measures can increase stock market returns. Our evidence shows that the stock market does not react significantly to government interventions in the health system. We believe that our findings provide valuable information for policymakers and financial investors around the world.

Full text: Available Collection: Databases of international organizations Database: Web of Science Language: English Journal: Emerging Markets Finance and Trade Year: 2021 Document Type: Article

Similar

MEDLINE

...
LILACS

LIS


Full text: Available Collection: Databases of international organizations Database: Web of Science Language: English Journal: Emerging Markets Finance and Trade Year: 2021 Document Type: Article