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
Kizys, Renatas
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Zaremba, Adam
30534111-ed33-47e9-bb18-2163d304eca6
Aharon, David Y.
3108729a-17ec-4bd6-b8fe-2559e45770d5
Demir, Ender
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Zawadka, Dariusz
5d7cb501-88e2-4e5c-af59-fbe8066db040
April 2021
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).
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.
Text
Full paper 2020-11-12
- Accepted Manuscript
More information
Accepted/In Press date: 11 November 2020
e-pub ahead of print date: 4 December 2020
Published date: April 2021
Additional Information:
Funding Information:
Adam Zaremba acknowledges the support of the National Science Centre of Poland (Grant No. 2016/23/B/HS4/00731).
Publisher Copyright:
© 2020 Elsevier B.V.
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
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Date deposited: 08 Dec 2020 17:31
Last modified: 17 Mar 2024 06:08
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Contributors
Author:
Adam Zaremba
Author:
David Y. Aharon
Author:
Ender Demir
Author:
Dariusz Zawadka
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