Izvorni znanstveni članak
https://doi.org/10.1080/1331677X.2021.1941181
COVID-19 and stock market nexus: evidence from Shanghai Stock Exchange
Chuanjian Li
Chi-Wei Su
Mehmet Altuntaş
Xin Li
Sažetak
The outbreak of the contagious pandemic Covid-19 has disturbed
various economic and business activities across the globe. This has
resulted in the declination of cash flows and revenues, which significantly increases the probability of corporate bankruptcies and
adversely affects the stock market performance. The current study
investigated the Covid-19 and stock market nexus whilst considering the Shanghai Stock Exchange (SSX). Covid-19 active cases and
deaths have been considered proxies for the Covid-19 from 1 April
2020 to 30 July 2020. For empirical analysis, this study utilised
quantile regression and dynamic ordinary least squares (DOLS).
Empirical findings of both quantile regression and DOLS illustrate
that both the Covid-19 active cases and deaths significantly decline
the SSX closing index. However, the quantile estimates reveal that
from lower (0.25) quantile to medium (0.50) to higher (0.75) quantile, the magnitude of these variables is found declining. Moreover,
the frequency domain causality test confirmed the unidirectional
causal relationship between the study variables, running from
Covid-19 cases and deaths to the SSX. The findings are robust,
which leads to providing practical policy implications that identified the need to revise health-finance-related policies and financial
education to combat such circumstances in the future.
Ključne riječi
Covid-19; China; quantile regression; stock market; Shanghai Stock Exchange
Hrčak ID:
302275
URI
Datum izdavanja:
31.3.2023.
Posjeta: 191 *