The impact of Covid-19 on global stock markets: an event study analysis

The COVID-19 pandemic that began towards the end of 2019 can be considered as one of the biggest outbreaks the world has seen in the past century. The interruption to economic activity and the uncertainty to finding a vaccine or a cure for the virus has created unforeseen levels of panic uncertainty...

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Main Author: Hassan, Ali
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2021
Subjects:
Online Access:https://eprints.nottingham.ac.uk/63249/
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author Hassan, Ali
author_facet Hassan, Ali
author_sort Hassan, Ali
building Nottingham Research Data Repository
collection Online Access
description The COVID-19 pandemic that began towards the end of 2019 can be considered as one of the biggest outbreaks the world has seen in the past century. The interruption to economic activity and the uncertainty to finding a vaccine or a cure for the virus has created unforeseen levels of panic uncertainty in the economy. These uncertainties among investors are translated into volatility in stock markets. The current study uses an event study analysis to see how investors react to certain events or announcements. By comparing the returns of the stock indices of several countries to the pre-COVID returns, the current study finds varied reactions from different regions and countries to risk level announcements from health authorities and vaccine and treatment news from various bodies. The results indicate that at the beginning of the pandemic investors are uncertain about the expectations, which resulted in mixed abnormal returns. However, as the COVID-19 pandemic grew, the impact of events; particularly negative news announcements such as the declaration by WHO that the COVID-19 as a global pandemic became more significant. became more significant. For positive events investors seem to be less reactive as a sense of pessimism seems to prevail over and despite the positive news.
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spelling nottingham-632492021-04-16T03:40:54Z https://eprints.nottingham.ac.uk/63249/ The impact of Covid-19 on global stock markets: an event study analysis Hassan, Ali The COVID-19 pandemic that began towards the end of 2019 can be considered as one of the biggest outbreaks the world has seen in the past century. The interruption to economic activity and the uncertainty to finding a vaccine or a cure for the virus has created unforeseen levels of panic uncertainty in the economy. These uncertainties among investors are translated into volatility in stock markets. The current study uses an event study analysis to see how investors react to certain events or announcements. By comparing the returns of the stock indices of several countries to the pre-COVID returns, the current study finds varied reactions from different regions and countries to risk level announcements from health authorities and vaccine and treatment news from various bodies. The results indicate that at the beginning of the pandemic investors are uncertain about the expectations, which resulted in mixed abnormal returns. However, as the COVID-19 pandemic grew, the impact of events; particularly negative news announcements such as the declaration by WHO that the COVID-19 as a global pandemic became more significant. became more significant. For positive events investors seem to be less reactive as a sense of pessimism seems to prevail over and despite the positive news. 2021-02-24 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/63249/1/MSC%20Dissertation.pdf Hassan, Ali (2021) The impact of Covid-19 on global stock markets: an event study analysis. [Dissertation (University of Nottingham only)] event study Covid-19 stock markets
spellingShingle event study
Covid-19
stock markets
Hassan, Ali
The impact of Covid-19 on global stock markets: an event study analysis
title The impact of Covid-19 on global stock markets: an event study analysis
title_full The impact of Covid-19 on global stock markets: an event study analysis
title_fullStr The impact of Covid-19 on global stock markets: an event study analysis
title_full_unstemmed The impact of Covid-19 on global stock markets: an event study analysis
title_short The impact of Covid-19 on global stock markets: an event study analysis
title_sort impact of covid-19 on global stock markets: an event study analysis
topic event study
Covid-19
stock markets
url https://eprints.nottingham.ac.uk/63249/