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
Date Written: April 7, 2020
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
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