Aye Corona! The Contagion Effects of Being Named Corona during the COVID-19 Pandemic

15 Pages Posted: 27 Mar 2020 Last revised: 9 Apr 2020

See all articles by Shaen Corbet

Shaen Corbet

Dublin City University ; University of Waikato - Management School

Greg Hou

University of Waikato - Management School

Yang Hu

University of Waikato - Management School

Brian M. Lucey

Trinity Business School, Trinity College Dublin; Ho Chi Minh City University of Economics and Finance; Jiangxi University of Finance and Economics

Les Oxley

University of Waikato - Department of Economics and Finance; Motu Economic and Public Policy Research Trust; Curtin University - Department of Economics

Date Written: March 26, 2020

Abstract

In the midst of the 2020 global COVID-2019 pandemic and subsequent financial market collapse, corporate entities have to navigate a number of truly unforeseen contagion risks. However, one such group included those who shared their corporate identity with aspects of the rapidly evolving coronavirus. Our results indicate the existence of sharp, dynamic and new correlations between companies related to the term `corona', outside of pre-existing interrelationships. We provide a number of observations as to why this situation occurred.

Keywords: COVID-19, Coronavirus, Contagion, Stock Market, Sentiment

JEL Classification: G14

Suggested Citation

Corbet, Shaen and Hou, Greg and Hu, Yang and Lucey, Brian M. and Oxley, Les, Aye Corona! The Contagion Effects of Being Named Corona during the COVID-19 Pandemic (March 26, 2020). Available at SSRN: https://ssrn.com/abstract=3561866 or http://dx.doi.org/10.2139/ssrn.3561866

Shaen Corbet

Dublin City University ( email )

Dublin 9
Ireland

University of Waikato - Management School ( email )

Hamilton
New Zealand

Greg Hou

University of Waikato - Management School ( email )

Hamilton
New Zealand

Yang Hu

University of Waikato - Management School ( email )

Te Raupapa
Private Bag 3105
Hamilton, 3240
New Zealand

Brian M. Lucey (Contact Author)

Trinity Business School, Trinity College Dublin ( email )

The Sutherland Centre, Level 6, Arts Building
Dublin 2
Ireland
+353 1 608 1552 (Phone)
+353 1 679 9503 (Fax)

Ho Chi Minh City University of Economics and Finance ( email )

59C Nguyen D├Čnh Chieu
6th Ward, District 3
Ho Chi Minh City, Ho Chi Minh 70000
Vietnam

Jiangxi University of Finance and Economics ( email )

South Lushan Road
Nanchang, Jiangxi 330013
China

Les Oxley

University of Waikato - Department of Economics and Finance ( email )

Private Bag 3105
Hamilton, 3105
New Zealand

Motu Economic and Public Policy Research Trust ( email )

Level 1 93 Cuba Street
P.O. Box 24390
Wellington, 6142
New Zealand

Curtin University - Department of Economics ( email )

Australia

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