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Market reactions to Recovery Fund press releases during COVID-19: An event-study analysis

Author

Listed:
  • Graziano, Elvira Anna
  • Fattobene, Lucrezia
  • Ricci, Ornella
  • Scimone, Xenia

Abstract

The Covid-19 pandemic imposes extraordinary policy interventions, like Recovery and Resilience Facility (RRF). This study find that: (i) investors perceive the RRF plan as a credible tool; (ii) several drivers related to trust, and sentiment explain the stock returns heterogeneity.

Suggested Citation

  • Graziano, Elvira Anna & Fattobene, Lucrezia & Ricci, Ornella & Scimone, Xenia, 2023. "Market reactions to Recovery Fund press releases during COVID-19: An event-study analysis," Economics Letters, Elsevier, vol. 230(C).
    • Handle: RePEc:eee:ecolet:v:230:y:2023:i:c:s0165176523002677
    DOI: 10.1016/j.econlet.2023.111242
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    References listed on IDEAS

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    More about this item

    Keywords

    Recovery and resilience facilities; Covid-19; Event study; Stock return;
    All these keywords.

    JEL classification:

    • D53 - Microeconomics - - General Equilibrium and Disequilibrium - - - Financial Markets
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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