Izvorni znanstveni članak
https://doi.org/10.1080/1331677X.2021.1934058
Does the stringency of government interventions for COVID19 reduce the negative impact on market growth? Evidence from Pacific and South Asia
Bo Jiang
Dan Gu
Ramla Sadiq
Tahseen Mohsan Khan
Hsu-Ling Chang
Sažetak
The objective of this study is to empirically assess the effect of
government decisions on market growth in response to social distancing initiatives, government reactions, economic support provision, and containment and health responses, to name a few. A
panel dataset of daily stock market returns is analysed in this
study, changes in COVID-19 cases, and government responses to
17 countries in the Pacific and South Asia from 1st January 2020
to 31st December 2020. Findings indicate that social distancing
policies have a significant negative effect on stock returns but a
substantial positive impact on market growth when new cases’
growth rate declines after accounting for country characteristics
and systematic risk due to foreign factors. A direct negative effect
is seen almost immediately, and a subsequently indirect positive
effect is noted. As expected, policies regarding social distancing
have an immediate negative impact, attributed mainly to the
expected negative effect on economic activity. Subsequently, we
see an indirect positive effect on market return because social distancing measures reduced the growth of confirmed COVID-19
cases. Both awareness, containment, and health index (ACHI) and
Income Support and Debt Relief Index (ISDRI) positively affect
market growth, as they are perceived to support individuals’
socio-economic well-being and mainly result in positive market returns.
Ključne riječi
COVID-19; government interventions; market growth; national culture; pandemic; uncertainty avoidance
Hrčak ID:
302252
URI
Datum izdavanja:
31.3.2023.
Posjeta: 422 *