IDEAS home Printed from https://ideas.repec.org/a/aho/journl/v16y2021i1p76-100.html
   My bibliography  Save this article

Investment behavior during the COVID pandemic: An evidence from emerging Asian markets

Author

Listed:
  • Sana Tauseef

    (Institute of Business Administration, Karachi-Pakistan)

Abstract

This study investigates the investor behavior in Asian emerging markets during the COVID pandemic period and assesses the asymmetric patterns and the influence of global and regional return dynamics on local investor behavior. It uses daily firm-level data from January 2001 to December 2020 for nine Asian emerging countries: China, India, Indonesia, Korea, Malaysia, Pakistan, Philippines, Taiwan and Thailand to estimate the impact of extreme price movements, market liquidity and US and Chinese market returns on local return dispersions using a non-linear specification. The findings indicate that rational price behavior prevailed in all markets over the COVID period. Though herding manifested itself occasionally during the low trading volume days in the pandemic period; overall, herd formation was not observed conditioned on domestic or non-domestic factors. Infact, our comparison of pre-COVID and COVID periods shows a significant shift in investment behavior away from herding and in favor of market efficiency for emerging markets of China, India and Korea. The findings on prevalence of rational price behavior are unique and reflective of improved informational environment in Asian emerging markets.

Suggested Citation

  • Sana Tauseef, 2021. "Investment behavior during the COVID pandemic: An evidence from emerging Asian markets," Business Review, School of Economics and Social Sciences, IBA Karachi, vol. 16(1), pages 76-100, January-J.
    • Handle: RePEc:aho:journl:v:16:y:2021:i:1:p:76-100
    as

    Download full text from publisher

    File URL: https://ir.iba.edu.pk/businessreview/vol16/iss1/4/
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aho:journl:v:16:y:2021:i:1:p:76-100. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: sshabbar (email available below). General contact details of provider: https://edirc.repec.org/data/ibakapk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.