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. 2020 Sep:27:100326.
doi: 10.1016/j.jbef.2020.100326. Epub 2020 Apr 8.

Death and contagious infectious diseases: Impact of the COVID-19 virus on stock market returns

Abdullah M Al-Awadhi  1 , Khaled Alsaifi  1 , Ahmad Al-Awadhi  2 , Salah Alhammadi  3
Affiliations

Death and contagious infectious diseases: Impact of the COVID-19 virus on stock market returns

Abdullah M Al-Awadhi et al. J Behav Exp Finance. 2020 Sep.

Abstract

This study investigates whether contagious infectious diseases affect stock market outcomes. As a natural experiment, we use panel data analysis to test the effect of the COVID-19 virus, which is a contagious infectious disease, on the Chinese stock market. The findings indicate that both the daily growth in total confirmed cases and in total cases of death caused by COVID-19 have significant negative effects on stock returns across all companies.

Keywords: COVID-19; Stock returns.

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Figures

Fig. 1
Fig. 1
Main events relating to COVID-19.
Fig. 2
Fig. 2
Cumulative average daily returns.
Fig. 3
Fig. 3
Daily active confirmed COVID-19 cases.
Fig. 4
Fig. 4
Daily confirmed cases of death from COVID-19.
See this image and copyright information in PMC

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