Market reactions to the arrival and containment of COVID-19: An event study()

We study the short-term market reactions of US and European stocks during the beginning of the COVID-19 pandemic. Employing an event study, we document that stocks react significantly negatively to the announcement of the first death in a given country. While our results suggest that the announcemen...

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Detalles Bibliográficos
Autores principales: Heyden, Kim J., Heyden, Thomas
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Elsevier Inc. 2021
Materias:
Article
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7467079/
https://www.ncbi.nlm.nih.gov/pubmed/32895606
http://dx.doi.org/10.1016/j.frl.2020.101745
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author Heyden, Kim J.
Heyden, Thomas
author_facet Heyden, Kim J.
Heyden, Thomas
author_sort Heyden, Kim J.
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description We study the short-term market reactions of US and European stocks during the beginning of the COVID-19 pandemic. Employing an event study, we document that stocks react significantly negatively to the announcement of the first death in a given country. While our results suggest that the announcements of country-specific fiscal policy measures negatively affect stock returns, monetary policy measures have the potential to calm markets. These reactions are either intensified or lessened by firm-specific characteristics such as tangible assets, liquidity, and institutional holdings.
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spelling pubmed-74670792020-09-03 Market reactions to the arrival and containment of COVID-19: An event study() Heyden, Kim J. Heyden, Thomas Financ Res Lett Article We study the short-term market reactions of US and European stocks during the beginning of the COVID-19 pandemic. Employing an event study, we document that stocks react significantly negatively to the announcement of the first death in a given country. While our results suggest that the announcements of country-specific fiscal policy measures negatively affect stock returns, monetary policy measures have the potential to calm markets. These reactions are either intensified or lessened by firm-specific characteristics such as tangible assets, liquidity, and institutional holdings. Elsevier Inc. 2021-01 2020-09-02 /pmc/articles/PMC7467079/ /pubmed/32895606 http://dx.doi.org/10.1016/j.frl.2020.101745 Text en © 2020 Elsevier Inc. All rights reserved. Since January 2020 Elsevier has created a COVID-19 resource centre with free information in English and Mandarin on the novel coronavirus COVID-19. The COVID-19 resource centre is hosted on Elsevier Connect, the company's public news and information website. Elsevier hereby grants permission to make all its COVID-19-related research that is available on the COVID-19 resource centre - including this research content - immediately available in PubMed Central and other publicly funded repositories, such as the WHO COVID database with rights for unrestricted research re-use and analyses in any form or by any means with acknowledgement of the original source. These permissions are granted for free by Elsevier for as long as the COVID-19 resource centre remains active.
spellingShingle Article
Heyden, Kim J.
Heyden, Thomas
Market reactions to the arrival and containment of COVID-19: An event study()
title Market reactions to the arrival and containment of COVID-19: An event study()
title_full Market reactions to the arrival and containment of COVID-19: An event study()
title_fullStr Market reactions to the arrival and containment of COVID-19: An event study()
title_full_unstemmed Market reactions to the arrival and containment of COVID-19: An event study()
title_short Market reactions to the arrival and containment of COVID-19: An event study()
title_sort market reactions to the arrival and containment of covid-19: an event study()
topic Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7467079/
https://www.ncbi.nlm.nih.gov/pubmed/32895606
http://dx.doi.org/10.1016/j.frl.2020.101745
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