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Trading from home: The impact of COVID-19 on trading volume around the world

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  • Chiah, Mardy
  • Zhong, Angel

Abstract

This paper examines the impact of COVID-19 on trading volume in stock markets around the world. We document a large spike in trading volume in 37 international equity markets. The surge in trading volume is found to be associated with the national culture and institutional environment of individual countries. In particular, investors tend to trade more heavily in societies characterized by a higher level of trust and individualism, as well as a lower level of uncertainty avoidance. Investors are also more willing to trade in wealthier nations, as well as those with stronger protection of legal rights, better governance systems, and greater gambling opportunities.

Suggested Citation

  • Chiah, Mardy & Zhong, Angel, 2020. "Trading from home: The impact of COVID-19 on trading volume around the world," Finance Research Letters, Elsevier, vol. 37(C).
    • Handle: RePEc:eee:finlet:v:37:y:2020:i:c:s1544612320315981
    DOI: 10.1016/j.frl.2020.101784
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    More about this item

    Keywords

    COVID-19; Trading volume; Sentiment; Culture; Governance; Gambling;
    All these keywords.

    JEL classification:

    • G13 - Financial Economics - - General Financial Markets - - - Contingent Pricing; Futures Pricing

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    Access and download statistics

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