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Did COVID-19 change spillover patterns between Fintech and other asset classes?

Did COVID-19 change spillover patterns between Fintech and other asset classes?
Did COVID-19 change spillover patterns between Fintech and other asset classes?
This study examines the spillover effect between financial technology (Fintech) stocks and other financial assets (gold, Bitcoin, a global equity index, crude oil, and the US Dollar (USD) during the COVID-19 crisis. Employing daily data from June 2019 to August 2020, our empirical analysis shows that the outbreak of COVID-19 exacerbated volatility transmission across asset classes, while subsequent decreases in new confirmed cases globally reduced the intensity of these spillovers. The evidence for the USD and gold supports their safe haven properties during catastrophic events, while innovative technology products as represented by a financial technology index and Bitcoin were highly susceptible to external shocks. These results show that when push comes to shove, the buck stops with the USD and gold and that the exorbitant privilege enjoyed by the USD prevailed during the COVID-19 pandemic.
Fintech, Bitcoin, Global equity, COVID-19
0275-5319
Thi Ngoc Le, Lan
d8eca8aa-64a2-43a3-b262-5ea7c63cc51d
Yarovaya, Larisa
2bd189e8-3bad-48b0-9d09-5d96a4132889
Nasir, Muhammad Ali
c28b4e94-83c6-4f3e-a1cf-b5afd6cce86b
Thi Ngoc Le, Lan
d8eca8aa-64a2-43a3-b262-5ea7c63cc51d
Yarovaya, Larisa
2bd189e8-3bad-48b0-9d09-5d96a4132889
Nasir, Muhammad Ali
c28b4e94-83c6-4f3e-a1cf-b5afd6cce86b

Thi Ngoc Le, Lan, Yarovaya, Larisa and Nasir, Muhammad Ali (2021) Did COVID-19 change spillover patterns between Fintech and other asset classes? Research in International Business and Finance. (In Press)

Record type: Article

Abstract

This study examines the spillover effect between financial technology (Fintech) stocks and other financial assets (gold, Bitcoin, a global equity index, crude oil, and the US Dollar (USD) during the COVID-19 crisis. Employing daily data from June 2019 to August 2020, our empirical analysis shows that the outbreak of COVID-19 exacerbated volatility transmission across asset classes, while subsequent decreases in new confirmed cases globally reduced the intensity of these spillovers. The evidence for the USD and gold supports their safe haven properties during catastrophic events, while innovative technology products as represented by a financial technology index and Bitcoin were highly susceptible to external shocks. These results show that when push comes to shove, the buck stops with the USD and gold and that the exorbitant privilege enjoyed by the USD prevailed during the COVID-19 pandemic.

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More information

Accepted/In Press date: 17 April 2021
Keywords: Fintech, Bitcoin, Global equity, COVID-19

Identifiers

Local EPrints ID: 449615
URI: http://eprints.soton.ac.uk/id/eprint/449615
ISSN: 0275-5319
PURE UUID: 249102bb-c3d5-41a0-80d5-0839975b3ac9
ORCID for Larisa Yarovaya: ORCID iD orcid.org/0000-0002-9638-2917

Catalogue record

Date deposited: 09 Jun 2021 16:30
Last modified: 11 Mar 2022 02:59

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Contributors

Author: Lan Thi Ngoc Le
Author: Larisa Yarovaya ORCID iD
Author: Muhammad Ali Nasir

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