The Global Impact of COVID-19 on Financial Markets

10 Pages Posted: 29 Apr 2020

See all articles by Wenzhao Wang

Wenzhao Wang

School of Management, University of Bradford

Martin Enilov

Queen Mary University of London - School of Economics and Finance

Date Written: April 25, 2020

Abstract

This paper hypothesizes that the number of novel coronavirus disease (COVID-19) cases significantly influence the stock returns in international financial markets. Our empirical evidence, based on panel Granger non-causality tests, strongly supports this hypothesis for Group of Seven (G7) countries. This also adds to the growing literature on the impact of non-economic variables on financial markets, from the perspective of diseases.

Keywords: COVID-19, Cross-section dependence, Panel bootstrap causality, Stock market return

JEL Classification: C23, G12, G14, G15

Suggested Citation

Wang, Wenzhao and Enilov, Martin, The Global Impact of COVID-19 on Financial Markets (April 25, 2020). Available at SSRN: https://ssrn.com/abstract=3588021 or http://dx.doi.org/10.2139/ssrn.3588021

Wenzhao Wang

School of Management, University of Bradford ( email )

Richmond Road
Bradford, BD7 1DP
United Kingdom

Martin Enilov (Contact Author)

Queen Mary University of London - School of Economics and Finance ( email )

Mile End Rd
Mile End Road
London, London E1 4NS
United Kingdom

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