The impact of COVID-19 coronavirus on stock markets: evidence from selected countries

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Date
2021-03-01
Journal Title
Journal ISSN
Volume Title
Publisher
Bulletin of Accounting and Finance Reviews
Abstract
In this paper, it has been aimed to reveal the possible effects of Covid-19 Coronavirus epidemic on stock markets. In the analysis using daily data between 23 January 2020 and 13 March 2020, possible effects on stock markets have been investigated with Maki (2012) cointegration test using both Covid-19 daily total death and Covid-19 daily total case. According to the results obtained, all stock markets examined with total death act together in the long run. It has been understood that total cases have a cointegration relationship of SSE, KOSPI and IBEX35 and do not have a cointegration relationship with FTSE MIB, CAC40, DAX30. In this regard, it is considered as one of the optimal options for investors to avoid investments in stock markets, turn to investment in gold markets, which is the safe investment port of each crisis period in long run. Also, considering the possibility of turning all life into an internet environment, turning to cryptocurrencies is seen as another alternative option for investors. In this direction, it will be the preference of investors to turn to derivative markets and to the stock markets of countries where Covid-19 is relatively rare to avoid risk.
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Keywords
Covid-19 Coronavirus, Stock Markets, Epidemic, Death, Case
Citation
Zeren, F. & Hızarcı, A. (2020). THE IMPACT OF COVID-19 CORONAVIRUS ON STOCK MARKETS: EVIDENCE FROM SELECTED COUNTRIES . Muhasebe ve Finans İncelemeleri Dergisi , 3 (1) , 78-84 . DOI: 10.32951/mufider.706159