NEWS ABOUT COVID-19: UNRAVELING THE MARKET REACTIONS AND INVESTOR SENTIMENT ACROSS DIFFERENT STOCK EXCHANGES

• Authors: Albrecht Peter , Maršálková Lucie , Dorňák Pavel
• Languages of publication: EN

Abstracts

EN

This paper examines the impact of news regarding the spread of the coronavirus on stock market returns. We investigate this impact across different geographical regions and behavioural aspects through regression analysis. Specifically, we explore the relationship between stock returns and factors such as investors’ attention, the number of new positive COVID-19 cases and deaths, and government measures implemented during the pandemic. Our findings reveal that news concerning new deaths associated with the virus and attention towards the vaccine significantly affected stock markets in Europe, the United States, and globally. Notably, these effects were observed prior to the approval of the first vaccine. However, our analysis does not confirm these results for the Japanese and Chinese stock markets. As a result, we argue that the Japanese stock market presents an opportunity for diversification during similar shocks. These findings contribute to a deeper understanding of the dynamics between public health crises and financial markets.

Keywords

EN

COVID-19; STOCK MARKET; STOCK EXCHANGE

• Publisher: Institute of Slovak and World Economics and Institute for Forecasting, Slovak Academy of Sciences
• Journal: Ekonomický časopis (Journal of Economics)
• Year: 2023
• Volume: 71
• Issue: 4-5
• Pages: 281 – 299

Contributors

author

Albrecht Peter

• Mendel University in Brno, Faculty of Business and Economics, Zemědělská 1, 613 00 Brno, Czech Republic

• https://orcid.org/0000-0003-2586-2603

author

Maršálková Lucie

author

Dorňák Pavel

Identifiers

DOI

https://doi.org/10.31577/ekoncas.2023.04-05.01