The Influence of COVID-19 on Emerging and Mature Stock Market Based on Time-Fixed Effects Model

Nexus Ikeda

2022

Abstract

The outbreak of COVID-19 pandemic has caused irriversable impact the entire social aspects, especially in stock markets. Under this background, understanding the relationship between the COVID-19 pandemic and stock performance has become increasingly important. This paper examines the effects of the COVID-19 pandemic on the stock markets, including both emerging and mature stock markets. By systematically reviewing daily data of the number of COVID confirmed cases and stock market returns from March 10, 2020, to April 30, 2020, in ten different countries (five emerging countries and five mature countries), this paper conducts the quantitative assessment using time-fixed effects model and unit root test, and finds that there is a negative relationship between the growing number of COVID confirmed cases. When looking at emerging and mature stock markets respectively, our findings suggest that emerging markets responded more strongly compared with mature markets. Understanding the link between the severity of the pandemic and the performance of the stock market will help governments around the world improve market adjustment mechanisms and maintain the stability of stock markets.

Paper Citation

in Harvard Style

Ikeda N. (2022). The Influence of COVID-19 on Emerging and Mature Stock Market Based on Time-Fixed Effects Model. In Proceedings of the 1st International Conference on Public Management, Digital Economy and Internet Technology - Volume 1: ICPDI; ISBN 978-989-758-620-0, SciTePress, pages 846-852. DOI: 10.5220/0011769800003607

in Bibtex Style

@conference{icpdi22,
author={Nexus Ikeda},
title={The Influence of COVID-19 on Emerging and Mature Stock Market Based on Time-Fixed Effects Model},
booktitle={Proceedings of the 1st International Conference on Public Management, Digital Economy and Internet Technology - Volume 1: ICPDI},
year={2022},
pages={846-852},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0011769800003607},
isbn={978-989-758-620-0},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 1st International Conference on Public Management, Digital Economy and Internet Technology - Volume 1: ICPDI
TI - The Influence of COVID-19 on Emerging and Mature Stock Market Based on Time-Fixed Effects Model
SN - 978-989-758-620-0
AU - Ikeda N.
PY - 2022
SP - 846
EP - 852
DO - 10.5220/0011769800003607
PB - SciTePress