COVID-19 lockdowns, stimulus packages, travel bans, and stock returns

Paresh Kumar Narayan, Dinh Hoang Bach Phan, Guangqiang Liu

Research output: Contribution to journalArticleResearchpeer-review

272 Citations (Scopus)

Abstract

This paper examines the effect of government responses of G7 countries to the coronavirus pandemic (COVID-19) on stock market returns. Using time-series data, we show that lockdowns, travel bans, and economic stimulus packages all had a positive effect on the G7 stock markets. However, lockdowns were most effective in cushioning the effects of COVID-19. Our results are robust to different measures of returns and controls for other factors of returns.

Original languageEnglish
Article number101732
Number of pages7
JournalFinance Research Letters
Volume38
DOIs
Publication statusPublished - Jan 2021
Externally publishedYes

Keywords

  • COVID-19
  • G7
  • Stock markets

Cite this