Dynamic Interaction of COVID-19 Incidence and Stock Market Performance: Evidence from Nigeria
The incursion of COVID-19 into global space has constituted both public health emergency and economic crisis, thus there is need to investigate the transmission of inherent uncertainty associated with the pandemic on stock markets. Based on this, this study investigates the dynamic interaction of CO...
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/PMC9069945/ http://dx.doi.org/10.1007/s40745-022-00407-7 |
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author | Oyelami, Lukman O. Ogbuagu, Matthew I. Saibu, Olufemi M. |
author_facet | Oyelami, Lukman O. Ogbuagu, Matthew I. Saibu, Olufemi M. |
author_sort | Oyelami, Lukman O. |
collection | PubMed |
description | The incursion of COVID-19 into global space has constituted both public health emergency and economic crisis, thus there is need to investigate the transmission of inherent uncertainty associated with the pandemic on stock markets. Based on this, this study investigates the dynamic interaction of COVID-19 incidence and stock market performance in Nigeria. The study uses daily time series data between 2/4/2020 and 8/8/2020 of All Share Index (ASI), COVID-19 pandemic confirmed cases, Nigerian borrowing rate and exchange rate to conduct the analysis. Sequel to careful econometric investigation of data, vector autoregressive model was adopted for estimation due to the dynamic nature of the study. The estimation results show that the lagged value of COVID-19 infections exerts negative impact on ASI; specifically, a unit increase in COVID-19 infections causes ASI to fall by 0.066%. Similarly, the lagged value of ASI exerts negative impact on COVID-19 cases. Equally notable, a unit increase in ASI causes covid-19 cases to fall by 0.02% though it is not statistically significant. The study concludes that COVID-19 has a negative effect on Nigerian stock market performance; therefore, apart from small and medium enterprises government may need to extend stimulus package to public quoted firms as part of the efforts to bring the economy back on track. |
format | Online Article Text |
id | pubmed-9069945 |
institution | National Center for Biotechnology Information |
language | English |
publishDate | 2022 |
publisher | Springer Berlin Heidelberg |
record_format | MEDLINE/PubMed |
spelling | pubmed-90699452022-05-04 Dynamic Interaction of COVID-19 Incidence and Stock Market Performance: Evidence from Nigeria Oyelami, Lukman O. Ogbuagu, Matthew I. Saibu, Olufemi M. Ann. Data. Sci. Article The incursion of COVID-19 into global space has constituted both public health emergency and economic crisis, thus there is need to investigate the transmission of inherent uncertainty associated with the pandemic on stock markets. Based on this, this study investigates the dynamic interaction of COVID-19 incidence and stock market performance in Nigeria. The study uses daily time series data between 2/4/2020 and 8/8/2020 of All Share Index (ASI), COVID-19 pandemic confirmed cases, Nigerian borrowing rate and exchange rate to conduct the analysis. Sequel to careful econometric investigation of data, vector autoregressive model was adopted for estimation due to the dynamic nature of the study. The estimation results show that the lagged value of COVID-19 infections exerts negative impact on ASI; specifically, a unit increase in COVID-19 infections causes ASI to fall by 0.066%. Similarly, the lagged value of ASI exerts negative impact on COVID-19 cases. Equally notable, a unit increase in ASI causes covid-19 cases to fall by 0.02% though it is not statistically significant. The study concludes that COVID-19 has a negative effect on Nigerian stock market performance; therefore, apart from small and medium enterprises government may need to extend stimulus package to public quoted firms as part of the efforts to bring the economy back on track. Springer Berlin Heidelberg 2022-05-05 2022 /pmc/articles/PMC9069945/ http://dx.doi.org/10.1007/s40745-022-00407-7 Text en © The Author(s), under exclusive licence to Springer-Verlag GmbH Germany, part of Springer Nature 2022 This article is made available via the PMC Open Access Subset for unrestricted research re-use and secondary analysis in any form or by any means with acknowledgement of the original source. These permissions are granted for the duration of the World Health Organization (WHO) declaration of COVID-19 as a global pandemic. |
spellingShingle | Article Oyelami, Lukman O. Ogbuagu, Matthew I. Saibu, Olufemi M. Dynamic Interaction of COVID-19 Incidence and Stock Market Performance: Evidence from Nigeria |
title | Dynamic Interaction of COVID-19 Incidence and Stock Market Performance: Evidence from Nigeria |
title_full | Dynamic Interaction of COVID-19 Incidence and Stock Market Performance: Evidence from Nigeria |
title_fullStr | Dynamic Interaction of COVID-19 Incidence and Stock Market Performance: Evidence from Nigeria |
title_full_unstemmed | Dynamic Interaction of COVID-19 Incidence and Stock Market Performance: Evidence from Nigeria |
title_short | Dynamic Interaction of COVID-19 Incidence and Stock Market Performance: Evidence from Nigeria |
title_sort | dynamic interaction of covid-19 incidence and stock market performance: evidence from nigeria |
topic | Article |
url | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9069945/ http://dx.doi.org/10.1007/s40745-022-00407-7 |
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