How stock markets reacted to COVID-19? Evidence from 25 countries

Deepa Bannigidadmath, Paresh Kumar Narayan, Dinh Hoang Bach Phan, Qiang Gong

Research output: Contribution to journalArticleResearchpeer-review

2 Citations (Scopus)


The objective of this paper is to analyse how COVID-19 related government policies influenced stock markets. Of the 25 countries we consider, stock returns did not react to any of the three policies – the stimulus package, lockdown, and travel ban in 20% of countries. For around 48% of countries, the effect on returns was negative, due largely to the stimulus package and lockdown policies. Of the 13 countries that experienced a change in the cash rate, returns were negative for 46% of the markets. The travel ban had the least effect on stock returns.

Original languageEnglish
Article number102161
Number of pages12
JournalFinance Research Letters
Publication statusAccepted/In press - 2021


  • COVID-19
  • Government policies
  • Returns

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