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The Effects Of Covid-19 Outbreak On Financial Markets


  • CELIK, Ismail

    (Department of Banking and Finance, Burdur Mehmet Akif Ersoy University, Turkey.)

  • YILMAZ, Tayfun

    (Department of Business, Burdur Mehmet Akif Ersoy University, Turkey.)

  • EMIR, Suleyman

    (Department of Business Administration, National Defence University, Turkey.)

  • SAK, Ahmet Furkan

    (Department of Business, Burdur Mehmet Akif Ersoy University, Turkey.)


The purpose of this paper is to measure the risks posed by the COVID-19 outbreak on financial market indicators, which caused uncertainty and fear all over the world. In the paper, the Fourier KPSS unit root test, which helps to measure structural breaks more precisely by means of the Fourier transformations in time series, the Fourier-SHIN Cointegration Test to determine long-term relationships between time series, and the Fourier Granger Causality Test to determine causality relationships are used. As a result of these tests applied on the daily price series between 31.12.2019 and 01.05.2020, it has been found that in the long term, the COVID-19 outbreak has a significant effect on stock markets, crude oil representing oil markets, and fear index; but no significant effect on Bitcoin which represents money markets. In the short term, it is concluded that COVID-19 has had a significant effect on stock markets, crude oil, fear index, and Bitcoin.

Suggested Citation

  • CELIK, Ismail & YILMAZ, Tayfun & EMIR, Suleyman & SAK, Ahmet Furkan, 2020. "The Effects Of Covid-19 Outbreak On Financial Markets," Studii Financiare (Financial Studies), Centre of Financial and Monetary Research "Victor Slavescu", vol. 24(4), pages 6-28, December.
  • Handle: RePEc:vls:finstu:v:24:y:2020:i:4:p:6-28

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    More about this item


    COVID-19; Fourier Transformations; Causality; Cointegration; Financial Markets. Pages: 6-28;
    All these keywords.

    JEL classification:

    • C58 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Financial Econometrics
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets


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