This study applies OLS,panel regression and Granger causality test to investigate the impact of the Coronavirus disease 2019(Covid-19)outbreak on the global equity markets during the early stage of the pandemic.We fin...This study applies OLS,panel regression and Granger causality test to investigate the impact of the Coronavirus disease 2019(Covid-19)outbreak on the global equity markets during the early stage of the pandemic.We find that the Covid-19 outbreak has a significant negative impact on the overall equity index return of the eight economies even at 0.1%significance level.Furthermore,the pandemic has a more significant impact on the European countries than on the East Asian economies.The results have three main implications.Firstly,policy makers should react fast to mitigate the impact of a crisis.Secondly,investors should be aware of an outbreak of disease or other risks and adjust their investments accordingly.Furthermore,the Covid-19 outbreak results in a shift of power from the west to the east.展开更多
文摘This study applies OLS,panel regression and Granger causality test to investigate the impact of the Coronavirus disease 2019(Covid-19)outbreak on the global equity markets during the early stage of the pandemic.We find that the Covid-19 outbreak has a significant negative impact on the overall equity index return of the eight economies even at 0.1%significance level.Furthermore,the pandemic has a more significant impact on the European countries than on the East Asian economies.The results have three main implications.Firstly,policy makers should react fast to mitigate the impact of a crisis.Secondly,investors should be aware of an outbreak of disease or other risks and adjust their investments accordingly.Furthermore,the Covid-19 outbreak results in a shift of power from the west to the east.
