Accepted JIFMIM.pdf (978.56 kB)
The quest for multidimensional financial immunity to the COVID-19 pandemic: evidence from international stock markets
journal contribution
posted on 2023-06-09, 22:38 authored by Adam Zaremba, Renatas Kizys, Panagiotis Tzouvanas, David Y Aharon, Ender DemirWhat determines a country’s financial immunity to a global pandemic? To answer this question, we investigate the behavior of 67 equity markets around the world during the COVID-19 outbreak in 2020. We consider a multidimensional data set that includes factors from finance, economics, demographics, technological development, healthcare, governance, culture, and law. Our study also accounts for government interventions, such as containment and closure policies, and economic stimuli. We apply machine learning techniques, panel regression, and factor analysis to ascertain sources of financial immunity to the coronavirus pandemic. Our findings demonstrate that stock markets in countries with low unemployment rates and populated with firms with conservative investment policies and low valuations relative to expected profits tend to be more immune to the healthcare crisis. We also find that firm government policy responses tend to support stock markets in times of the pandemic.
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Publication status
- Published
File Version
- Accepted version
Journal
Journal of International Financial Markets, Institutions and MoneyISSN
1042-4431Publisher
ElsevierExternal DOI
Article number
a101284Department affiliated with
- Accounting and Finance Publications
Full text available
- Yes
Peer reviewed?
- Yes
Legacy Posted Date
2021-01-06First Open Access (FOA) Date
2022-01-14First Compliant Deposit (FCD) Date
2021-01-05Usage metrics
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