Original scientific paper
https://doi.org/10.1080/1331677X.2021.1937260
Examining the nexus between oil price, COVID-19, uncertainty index, and stock price of electronic sports: fresh insights from the nonlinear approach
Jing Wang
Muhammad Umar
Sahar Afshan
Ilham Haouas
Abstract
Due to the arrival of a novel coronavirus, the year 2020 will forever be remembered. It is not hyperbole to state that COVID-19
has affected and infected almost everyone in society and the global community in different ways. However, many parts of the
world seem to be improving. Individuals, organisations, and governments are trying to work through some effective strategies.
The present study investigates the influence of fluctuation in the
oil prices, COVID-19, and daily news-based index on Electronic
Arts Inc’s stock prices by applying a novel approach entitled
Quantile Autoregressive Distributed Lag (QARDL) during
2019–2020. This approach is quite meaningful as it incorporates
various quantiles with a comprehensive explanation of overall
dependence among stated variables ignored by the traditional
models like quantile regression, OLS, ARDL, etc. The study outcomes through QARDL reveal that the error correction coefficient
is significant in various quantiles while confirming the long-run
linkage among oil price, COVID-19, and EPU. More specifically, the
study outcomes confirm a positive linkage (in all the quantiles)
between COVID-19 and stock prices of Electronic Arts Inc,
whereas a negative connection (for 0.20th to 0.95th quantiles)
between oil prices and SPI. Furthermore, the Granger causality
findings indicate the bidirectional causality between SPI and OIL
and between SPI and EPU. Various policy implications are also
provided under the present study
Keywords
COVID-19; oil price; QARDL; stock price; granger causality
Hrčak ID:
302268
URI
Publication date:
31.3.2023.
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