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Global evidence on early effects of COVID‐19 on stock markets

Author

Listed:
  • Burcu Kapar
  • Steven Buigut
  • Faisal Rana

Abstract

We use event study approach to assess the effects of the early stages of COVID‐19 on global markets. A large sample of stock markets (63) covering all key global markets and regions is included. The findings indicate that the Wuhan lockdown induces negative spillover effects on markets in Europe, North America, and other global markets that have yet to introduce domestic restrictions and have minimal infections at the time. Increasing cases outside China particularly in Europe and the introduction of containment measures result in severe market decline. Our findings highlight the need for quick, globally coordinated response to contagious diseases.

Suggested Citation

  • Burcu Kapar & Steven Buigut & Faisal Rana, 2022. "Global evidence on early effects of COVID‐19 on stock markets," Review of Financial Economics, John Wiley & Sons, vol. 40(4), pages 438-463, October.
    • Handle: RePEc:wly:revfec:v:40:y:2022:i:4:p:438-463
    DOI: 10.1002/rfe.1156
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    References listed on IDEAS

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    Cited by:

    1. Cecilia Téllez Valle & Margarita Martín García & José Luis Martín Marín, 2026. "The impact of war in Ukraine on market and credit risk: A case study of EuroStoxx companies," Review of Financial Economics, John Wiley & Sons, vol. 44(1), January.

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