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COVID-19, government policy responses, and stock market liquidity around the world: A note

COVID-19, government policy responses, and stock market liquidity around the world: A note
COVID-19, government policy responses, and stock market liquidity around the world: A note
Unprecedented non-pharmaceutical interventions targeted to curb the spread of COVID-19 exerted a dramatic impact on the global economy and financial markets. This study is the first attempt to investigate the influence of these government policy responses on global stock market liquidity. To this end, we examine daily data from 49 countries for the period January-April 2020. We demonstrate that the impact of the interventions is limited in scale and scope. Workplace and school closures deteriorate liquidity in emerging markets, while information campaigns on the novel coronavirus facilitate trading activity.
COVID-19, government policy responses, international financial markets., non-pharmaceutical interventions, novel coronavirus, stock market liquidity, turnover ratio
0275-5319
Kizys, Renatas
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Zaremba, Adam
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Aharon, David Y.
3108729a-17ec-4bd6-b8fe-2559e45770d5
Demir, Ender
788d39be-2118-4b68-aedb-80b31749d2f2
Zawadka, Dariusz
5d7cb501-88e2-4e5c-af59-fbe8066db040
Kizys, Renatas
9d3a6c5f-075a-44f9-a1de-32315b821978
Zaremba, Adam
30534111-ed33-47e9-bb18-2163d304eca6
Aharon, David Y.
3108729a-17ec-4bd6-b8fe-2559e45770d5
Demir, Ender
788d39be-2118-4b68-aedb-80b31749d2f2
Zawadka, Dariusz
5d7cb501-88e2-4e5c-af59-fbe8066db040

Kizys, Renatas, Zaremba, Adam, Aharon, David Y., Demir, Ender and Zawadka, Dariusz (2021) COVID-19, government policy responses, and stock market liquidity around the world: A note. Research in International Business and Finance, 56, [101359]. (doi:10.1016/j.ribaf.2020.101359).

Record type: Article

Abstract

Unprecedented non-pharmaceutical interventions targeted to curb the spread of COVID-19 exerted a dramatic impact on the global economy and financial markets. This study is the first attempt to investigate the influence of these government policy responses on global stock market liquidity. To this end, we examine daily data from 49 countries for the period January-April 2020. We demonstrate that the impact of the interventions is limited in scale and scope. Workplace and school closures deteriorate liquidity in emerging markets, while information campaigns on the novel coronavirus facilitate trading activity.

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Full paper 2020-11-12 - Accepted Manuscript
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Accepted/In Press date: 11 November 2020
e-pub ahead of print date: 4 December 2020
Published date: April 2021
Keywords: COVID-19, government policy responses, international financial markets., non-pharmaceutical interventions, novel coronavirus, stock market liquidity, turnover ratio

Identifiers

Local EPrints ID: 445425
URI: http://eprints.soton.ac.uk/id/eprint/445425
ISSN: 0275-5319
PURE UUID: 39faac3f-c7ae-4ad5-96c3-57bc85e0a2d1
ORCID for Renatas Kizys: ORCID iD orcid.org/0000-0001-9104-1809

Catalogue record

Date deposited: 08 Dec 2020 17:31
Last modified: 04 Jun 2022 04:01

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Contributors

Author: Renatas Kizys ORCID iD
Author: Adam Zaremba
Author: David Y. Aharon
Author: Ender Demir
Author: Dariusz Zawadka

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