In search of COVID-19 and stock market behavior

The aim of this paper is two-fold. First, we investigate the nexus between investor attention to COVID-19 and daily returns in 59 countries. We use Google Search Volume Index to account for investor attention. Our empirical findings suggest that the search volume of the pandemic is negatively associ...

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Detalles Bibliográficos
Autores principales: Chundakkadan, Radeef, Nedumparambil, Elizabeth
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Elsevier Inc. 2022
Materias:
Article
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9620496/
https://www.ncbi.nlm.nih.gov/pubmed/38013956
http://dx.doi.org/10.1016/j.gfj.2021.100639
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author Chundakkadan, Radeef
Nedumparambil, Elizabeth
author_facet Chundakkadan, Radeef
Nedumparambil, Elizabeth
author_sort Chundakkadan, Radeef
collection PubMed
description The aim of this paper is two-fold. First, we investigate the nexus between investor attention to COVID-19 and daily returns in 59 countries. We use Google Search Volume Index to account for investor attention. Our empirical findings suggest that the search volume of the pandemic is negatively associated with daily returns. The effect was strong in the week that the World Health Organization declared it as pandemic and among advanced countries. Second, we explore the relationship between search volume and market volatility. The findings suggest that COVID-19 sentiment generated excess volatility in the market. Our findings remain robust with alternative specifications.
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spelling pubmed-96204962022-10-31 In search of COVID-19 and stock market behavior Chundakkadan, Radeef Nedumparambil, Elizabeth Global Finance Journal Article The aim of this paper is two-fold. First, we investigate the nexus between investor attention to COVID-19 and daily returns in 59 countries. We use Google Search Volume Index to account for investor attention. Our empirical findings suggest that the search volume of the pandemic is negatively associated with daily returns. The effect was strong in the week that the World Health Organization declared it as pandemic and among advanced countries. Second, we explore the relationship between search volume and market volatility. The findings suggest that COVID-19 sentiment generated excess volatility in the market. Our findings remain robust with alternative specifications. Elsevier Inc. 2022-11 2021-03-23 /pmc/articles/PMC9620496/ /pubmed/38013956 http://dx.doi.org/10.1016/j.gfj.2021.100639 Text en © 2021 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
Chundakkadan, Radeef
Nedumparambil, Elizabeth
In search of COVID-19 and stock market behavior
title In search of COVID-19 and stock market behavior
title_full In search of COVID-19 and stock market behavior
title_fullStr In search of COVID-19 and stock market behavior
title_full_unstemmed In search of COVID-19 and stock market behavior
title_short In search of COVID-19 and stock market behavior
title_sort in search of covid-19 and stock market behavior
topic Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9620496/
https://www.ncbi.nlm.nih.gov/pubmed/38013956
http://dx.doi.org/10.1016/j.gfj.2021.100639
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