Stock Return and the COVID-19 pandemic: Evidence from Canada and the US

We investigate the dynamic responses of stock return to the unexpected changes in the COVID-19 cases and the uncertainty associated with the pandemic. Using daily data from Canada and the US, we find there is a negative effect of an increase in the COVID-19 cases on the stock market in general. More...

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Detalles Bibliográficos
Autor principal: Xu, Libo
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Elsevier Inc. 2021
Materias:
Article
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9761189/
https://www.ncbi.nlm.nih.gov/pubmed/36569655
http://dx.doi.org/10.1016/j.frl.2020.101872
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author Xu, Libo
author_facet Xu, Libo
author_sort Xu, Libo
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description We investigate the dynamic responses of stock return to the unexpected changes in the COVID-19 cases and the uncertainty associated with the pandemic. Using daily data from Canada and the US, we find there is a negative effect of an increase in the COVID-19 cases on the stock market in general. Moreover, the stock return responses are asymmetric in the increase and decrease in the cases in Canada. The asymmetry is caused by the negative impact of uncertainty about the pandemic. We also find that uncertainty adversely affects the US stock market. However, the magnitude is small.
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spelling pubmed-97611892022-12-19 Stock Return and the COVID-19 pandemic: Evidence from Canada and the US Xu, Libo Financ Res Lett Article We investigate the dynamic responses of stock return to the unexpected changes in the COVID-19 cases and the uncertainty associated with the pandemic. Using daily data from Canada and the US, we find there is a negative effect of an increase in the COVID-19 cases on the stock market in general. Moreover, the stock return responses are asymmetric in the increase and decrease in the cases in Canada. The asymmetry is caused by the negative impact of uncertainty about the pandemic. We also find that uncertainty adversely affects the US stock market. However, the magnitude is small. Elsevier Inc. 2021-01 2020-11-28 /pmc/articles/PMC9761189/ /pubmed/36569655 http://dx.doi.org/10.1016/j.frl.2020.101872 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
Xu, Libo
Stock Return and the COVID-19 pandemic: Evidence from Canada and the US
title Stock Return and the COVID-19 pandemic: Evidence from Canada and the US
title_full Stock Return and the COVID-19 pandemic: Evidence from Canada and the US
title_fullStr Stock Return and the COVID-19 pandemic: Evidence from Canada and the US
title_full_unstemmed Stock Return and the COVID-19 pandemic: Evidence from Canada and the US
title_short Stock Return and the COVID-19 pandemic: Evidence from Canada and the US
title_sort stock return and the covid-19 pandemic: evidence from canada and the us
topic Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9761189/
https://www.ncbi.nlm.nih.gov/pubmed/36569655
http://dx.doi.org/10.1016/j.frl.2020.101872
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