Covid-19’s adverse effects on a stock market index

Kang Hua CAO*, Qiqi Li, Yun Liu, Chi-Keung WOO

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

8 Citations (Scopus)

Abstract

We perform a panel data analysis of 14 daily stock market indices during 01/21/2020–06/30/2020 to document a stock market index’s negative responsiveness to Covid-19’s spread variations. We find that a stock market index’s elasticity estimate is −0.028 (p-value <0.01) for local cumulative confirmed cases. As a stock market index tends to move with Covid-19’s local and non-local spreads, international efforts of containment are expected to pare stock market losses.

Original languageEnglish
JournalApplied Economics Letters
DOIs
Publication statusAccepted/In press - 2020

Scopus Subject Areas

  • Economics and Econometrics

User-Defined Keywords

  • Covid-19
  • daily stock market index
  • market index elasticities
  • panel data analysis

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