The impact of COVID-19 on emerging stock markets

Mert Topcu; Omer Serkan Gulal

doi:10.1016/j.frl.2020.101691

The impact of COVID-19 on emerging stock markets

Financ Res Lett. 2020 Oct:36:101691. doi: 10.1016/j.frl.2020.101691. Epub 2020 Jul 10.

Authors

Mert Topcu¹, Omer Serkan Gulal²

Affiliations

¹ Faculty of Economics and Administrative Sciences, Department of Economics, Nevsehir Haci Bektas Veli University, Nevsehir 50300, Turkey.
² Faculty of Economics and Administrative Sciences, Department of Finance, Nevsehir Haci Bektas Veli University, Turkey.

Abstract

The goal of this study is to investigate the impact of COVID-19 on emerging stock markets over the period March 10 - April 30, 2020. Findings reveal that the negative impact of pandemic on emerging stock markets has gradually fallen and begun to taper off by mid-April. In terms of regional classification, the impact of the outbreak has been the highest in Asian emerging markets whereas emerging markets in Europe have experienced the lowest. We also find that official response time and the size of stimulus package provided by the governments matter in offsetting the effects of the pandemic.

Keywords: COVID-19; panel data; stock market.