Trading from Home: The Impact of COVID-19 on Trading Volume around the World

15 Pages Posted: 28 Sep 2020

See all articles by Mardy Chiah

Mardy Chiah

Swinburne University of Technology

Angel Zhong

RMIT University - School of Economics, Finance and Marketing

Date Written: May 18, 2020

Abstract

This paper examines the impact of COVID-19 on trading volume in stock markets around the world. We document a large spike in trading volume in 37 international equity markets. The surge in trading volume is found to be associated with the national culture and institutional environment of individual countries. In particular, investors tend to trade more heavily in societies characterized by a higher level of trust and individualism, as well as a lower level of uncertainty avoidance. Investors are also more willing to trade in wealthier nations, as well as those with stronger protection of legal rights, better governance systems, and greater gambling opportunities.

Keywords: COVID-19, trading volume, sentiment, culture, governance, gambling

JEL Classification: G13

Suggested Citation

Chiah, Mardy and Zhong, Angel, Trading from Home: The Impact of COVID-19 on Trading Volume around the World (May 18, 2020). Finance Research Letters, Forthcoming, Available at SSRN: https://ssrn.com/abstract=3700572 or http://dx.doi.org/10.2139/ssrn.3700572

Mardy Chiah

Swinburne University of Technology ( email )

Cnr Wakefield and William Streets, Hawthorn Victor
3122 Victoria, Victoria 3122
Australia

Angel Zhong (Contact Author)

RMIT University - School of Economics, Finance and Marketing ( email )

Level 12, 239 Bourke Street
Melbourne, Victoria 3000
Australia

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