Death and Contagious Infectious Diseases: Impact of the COVID-19 Virus on Stock Market Returns

Al-Awadhi, A. M., Al-Saifi, K., Al-Awadhi, A., & Alhamadi, S. (2020). Death and contagious infectious diseases: Impact of the COVID-19 virus on stock market returns. Journal of Behavioral and Experimental Finance, 100326.‏

Posted: 20 Apr 2020 Last revised: 27 Apr 2020

See all articles by Abdullah Al-Awadhi

Abdullah Al-Awadhi

Public Authority for Applied Education and Training (PAAET)

Date Written: April 7, 2020

Abstract

This study investigates whether contagious infectious diseases affect stock market outcomes. As a natural experiment, we use panel data analysis to test the effect of the COVID-19 virus, which is a contagious infectious disease, on the Chinese stock market. The findings indicate that both the daily growth in total confirmed cases and in total cases of death caused by COVID-19 have significant negative effects on stock returns across all companies.

Keywords: Stock returns, COVID-19

JEL Classification: G10, G14, G15, C23, A10, E00, E01, E60, E66, F01, F60, G01

Suggested Citation

Al-Awadhi, Abdullah, Death and Contagious Infectious Diseases: Impact of the COVID-19 Virus on Stock Market Returns (April 7, 2020). Al-Awadhi, A. M., Al-Saifi, K., Al-Awadhi, A., & Alhamadi, S. (2020). Death and contagious infectious diseases: Impact of the COVID-19 virus on stock market returns. Journal of Behavioral and Experimental Finance, 100326.‏, Available at SSRN: https://ssrn.com/abstract=3578733

Abdullah Al-Awadhi (Contact Author)

Public Authority for Applied Education and Training (PAAET) ( email )

P.O. Box 23167
Safat, 13092
Kuwait

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