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How Covid‐19 And Government Actions Affected Stock Indexes

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  • Tchai Tavor
  • Sharon Teitler‐Regev

Abstract

The COVID‐19 virus created a health crisis that led to one of the biggest economic crises in the world. This study analyzes the effects of different variables on the stock indexes of 15 different countries grouped into five areas/regions: Europe, the United States, South America, New Zealand, and Asia. The variables include data regarding COVID‐19 on infections and death as well as news regarding government actions. The descriptive statistics and the regression analysis expose differences between the areas across all the variables. The variables with the strongest effects are the number of infected people and the number of recoveries, except for South America where only the number of infected people had the strongest effect. In addition, in the United States and New Zealand, infection of famous people and/or people in key positions is the most significant variable, while in Asia and South America it was the behavior of the public and in Europe it was the restrictions on the education system. El virus COVID‐19 creó una crisis de salud que condujo a una de las crisis económicas más grandes del mundo. Este estudio analiza los efectos de diferentes variables en los índices bursátiles de 15 países diferentes agrupados en cinco áreas: Europa, Estados Unidos, América del Sur, Nueva Zelanda y Asia. Las variables incluyen datos sobre COVID‐19 en contagios y muertes, así como noticias sobre acciones gubernamentales. Las estadísticas descriptivas y el análisis de regresión exponen diferencias entre las áreas en todas las variables. Las variables con los efectos más fuertes son el número de personas infectadas y el número de recuperaciones, excepto en América del Sur, donde solo el número de personas infectadas tuvo el efecto más fuerte. Además, en Estados Unidos y Nueva Zelanda la infección de personajes famosos y/o personas en puestos clave es la variable más significativa, mientras que en Asia y Sudamérica fue el comportamiento del público y en Europa fueron las restricciones a la sistema educativo. 2019冠状病毒病（COVID‐19）已造成一场卫生危机，进而引发了世界上最大的经济危机之一。本研究分析了不同变量对15个不同国家股票指数的影响，这些国家分为五个区域：欧洲、美国、南美洲、新西兰和亚洲。这些变量包括有关COVID‐19感染和死亡的数据以及有关政府行动的新闻。数据的描述性统计和回归分析揭示，这五个区域在所有变量之间都存在差异。影响力最强的变量是感染人数和康复人数，南美洲除外（影响力最强的变量仅为感染人数）。此外，在美国和新西兰，名人和/或关键职位人员被感染一事是最重要的变量，而在亚洲和南美洲，最重要的变量为公众行为，而在欧洲，最重要的变量则是对教育系统的限制。

Suggested Citation

  • Tchai Tavor & Sharon Teitler‐Regev, 2023. "How Covid‐19 And Government Actions Affected Stock Indexes," World Affairs, John Wiley & Sons, vol. 186(3), pages 603-626, September.
    • Handle: RePEc:wly:woraff:v:186:y:2023:i:3:p:603-626
    DOI: 10.1177/00438200231178323
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    References listed on IDEAS

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