Global Evidence on Early Effects of COVID-19 on Stock Markets

15 Pages Posted: 11 Nov 2020

See all articles by Burcu Kapar

Burcu Kapar

American University in Dubai

Steven Buigut

Georgia State University - Department of Economics

Faisal Rana

Massey University

Date Written: October 21, 2020

Abstract

We use event study approach to assess the effects of the early stages of COVID-19 on global markets. A large sample of stock markets (66) covering all key global markets and regions is included. The findings indicate that the Wuhan lockdown induces negative spillover effects on markets in Europe, North America and other global markets that have yet to introduce domestic restrictions and have minimal infections at the time. Increasing cases outside China particularly in Europe and the introduction of containment measures result in severe market decline. Our findings highlight the need for quick, globally coordinated response to contagious diseases.

Keywords: Comparative Analysis, Stock Markets, COVID-19, Event Study

JEL Classification: G14; G15; G12

Suggested Citation

KAPAR, BURCU and Buigut, Steven and Rana, Faisal, Global Evidence on Early Effects of COVID-19 on Stock Markets (October 21, 2020). Available at SSRN: https://ssrn.com/abstract=3727790 or http://dx.doi.org/10.2139/ssrn.3727790

BURCU KAPAR (Contact Author)

American University in Dubai ( email )

Dubai, UAE 28282
United Arab Emirates

Steven Buigut

Georgia State University - Department of Economics ( email )

P.O. Box 3992
Atlanta, GA 30302-3992
United States

Faisal Rana

Massey University ( email )

Private Bag 11 222
Palmerston North, Manawatu 4442
New Zealand

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