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How does Covid-19 affect global equity markets?
This study applies OLS, panel regression and Granger causality test to investigate the impact of the Coronavirus disease 2019 (Covid-19) outbreak on the global equity markets during the early stage of the pandemic. We find that the Covid-19 outbreak has a significant negative impact on the overall e...
Autores principales: | , |
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Formato: | Online Artículo Texto |
Lenguaje: | English |
Publicado: |
Springer Berlin Heidelberg
2022
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Materias: | |
Acceso en línea: | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8885142/ https://www.ncbi.nlm.nih.gov/pubmed/35251895 http://dx.doi.org/10.1186/s40854-021-00330-5 |
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author | Hui, Eddie C. M. Chan, Ka Kwan Kevin |
author_facet | Hui, Eddie C. M. Chan, Ka Kwan Kevin |
author_sort | Hui, Eddie C. M. |
collection | PubMed |
description | This study applies OLS, panel regression and Granger causality test to investigate the impact of the Coronavirus disease 2019 (Covid-19) outbreak on the global equity markets during the early stage of the pandemic. We find that the Covid-19 outbreak has a significant negative impact on the overall equity index return of the eight economies even at 0.1% significance level. Furthermore, the pandemic has a more significant impact on the European countries than on the East Asian economies. The results have three main implications. Firstly, policy makers should react fast to mitigate the impact of a crisis. Secondly, investors should be aware of an outbreak of disease or other risks and adjust their investments accordingly. Furthermore, the Covid-19 outbreak results in a shift of power from the west to the east. |
format | Online Article Text |
id | pubmed-8885142 |
institution | National Center for Biotechnology Information |
language | English |
publishDate | 2022 |
publisher | Springer Berlin Heidelberg |
record_format | MEDLINE/PubMed |
spelling | pubmed-88851422022-03-01 How does Covid-19 affect global equity markets? Hui, Eddie C. M. Chan, Ka Kwan Kevin Financ Innov Research This study applies OLS, panel regression and Granger causality test to investigate the impact of the Coronavirus disease 2019 (Covid-19) outbreak on the global equity markets during the early stage of the pandemic. We find that the Covid-19 outbreak has a significant negative impact on the overall equity index return of the eight economies even at 0.1% significance level. Furthermore, the pandemic has a more significant impact on the European countries than on the East Asian economies. The results have three main implications. Firstly, policy makers should react fast to mitigate the impact of a crisis. Secondly, investors should be aware of an outbreak of disease or other risks and adjust their investments accordingly. Furthermore, the Covid-19 outbreak results in a shift of power from the west to the east. Springer Berlin Heidelberg 2022-03-01 2022 /pmc/articles/PMC8885142/ /pubmed/35251895 http://dx.doi.org/10.1186/s40854-021-00330-5 Text en © The Author(s) 2022 https://creativecommons.org/licenses/by/4.0/Open AccessThis article is licensed under a Creative Commons Attribution 4.0 International License, which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons licence, and indicate if changes were made. The images or other third party material in this article are included in the article's Creative Commons licence, unless indicated otherwise in a credit line to the material. If material is not included in the article's Creative Commons licence and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder. To view a copy of this licence, visit http://creativecommons.org/licenses/by/4.0/ (https://creativecommons.org/licenses/by/4.0/) . |
spellingShingle | Research Hui, Eddie C. M. Chan, Ka Kwan Kevin How does Covid-19 affect global equity markets? |
title | How does Covid-19 affect global equity markets? |
title_full | How does Covid-19 affect global equity markets? |
title_fullStr | How does Covid-19 affect global equity markets? |
title_full_unstemmed | How does Covid-19 affect global equity markets? |
title_short | How does Covid-19 affect global equity markets? |
title_sort | how does covid-19 affect global equity markets? |
topic | Research |
url | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8885142/ https://www.ncbi.nlm.nih.gov/pubmed/35251895 http://dx.doi.org/10.1186/s40854-021-00330-5 |
work_keys_str_mv | AT huieddiecm howdoescovid19affectglobalequitymarkets AT chankakwankevin howdoescovid19affectglobalequitymarkets |