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The impact of COVID-19 on global investor attention

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  • Lin, Zih-Ying
  • Lu, Jia-Wen

Abstract

This research explores the effect of COVID-19 on global investor attention using data from G7 and G20 countries. We take the numbers of COVID-19 new confirmed cases and deaths to measure the level of COVID-19. The empirical findings show that COVID-19 new cases and deaths significantly positively correlate to (abnormal) investor attention, especially for G7 countries, but we only see a significantly positive correlation in a few G20 countries. We further consider the effect of COVID-19 variants and vaccination rate on such a correlation and present that its effect on global investor attention is more pronounced during the Alpha variant and Delta variant waves. Finally, we provide evidence when vaccination rates are higher that the positive COVID-19 and global investor attention nexus weakens.

Suggested Citation

  • Lin, Zih-Ying & Lu, Jia-Wen, 2024. "The impact of COVID-19 on global investor attention," Pacific-Basin Finance Journal, Elsevier, vol. 88(C).
    • Handle: RePEc:eee:pacfin:v:88:y:2024:i:c:s0927538x24002749
    DOI: 10.1016/j.pacfin.2024.102522
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    More about this item

    Keywords

    COVID-19 epidemic; Virus variant; Vaccination rate; Global investor attention;
    All these keywords.

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading

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