The Effect of Coronavirus Spread on Stock Markets: The Case of the Worst 6 Countries

11 Pages Posted: 17 Apr 2020

Date Written: April 16, 2020

Abstract

This paper attempts to investigate the effects of Coronavirus spread on stock markets. Coronavirus spread has been measured by cumulative cases, new cases, cumulative deaths and new deaths. This has been applied on the worst 6 countries (according to number of cumulative cases), on daily basis over the period from March 1, 2020 till April 10, 2020. Coronavirus spread has been measured by numbers per million of population, while stock market return is measured by Δ in stock market index.

Results indicate that stock market return seems to be sensitive to Coronavirus cases more than deaths, and to Coronavirus cumulative indicators more than new ones. Besides, robustness check confirms the negative effect of Coronavirus spread on stock market return for China, France, Germany and Spain. However, these effects haven’t been confirmed for Italy and United States.

Keywords: Coronavirus, COVID- 19, stock market return, GMM technique, panel analysis

Suggested Citation

Alber, Nader, The Effect of Coronavirus Spread on Stock Markets: The Case of the Worst 6 Countries (April 16, 2020). Available at SSRN: https://ssrn.com/abstract=3578080 or http://dx.doi.org/10.2139/ssrn.3578080

Nader Alber (Contact Author)

Ain Shams University ( email )

Cairo
Egypt

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
3,808
Abstract Views
9,922
Rank
5,258
PlumX Metrics