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COVID-19 lockdowns, stimulus packages, travel bans, and stock returns

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  • Narayan, Paresh Kumar
  • Phan, Dinh Hoang Bach
  • Liu, Guangqiang

Abstract

This paper examines the effect of government responses of G7 countries to the coronavirus pandemic (COVID-19) on stock market returns. Using time-series data, we show that lockdowns, travel bans, and economic stimulus packages all had a positive effect on the G7 stock markets. However, lockdowns were most effective in cushioning the effects of COVID-19. Our results are robust to different measures of returns and controls for other factors of returns.

Suggested Citation

  • Narayan, Paresh Kumar & Phan, Dinh Hoang Bach & Liu, Guangqiang, 2021. "COVID-19 lockdowns, stimulus packages, travel bans, and stock returns," Finance Research Letters, Elsevier, vol. 38(C).
    • Handle: RePEc:eee:finlet:v:38:y:2021:i:c:s154461232030934x
    DOI: 10.1016/j.frl.2020.101732
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    Keywords

    COVID-19; Stock markets; G7;
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