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How could positive and negative news related to COVID-19 affect the stock market respectively
Jönköping University, Jönköping International Business School, JIBS, Business Administration.
Jönköping University, Jönköping International Business School, JIBS, Business Administration.
2021 (English)Independent thesis Advanced level (degree of Master (One Year)), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

Since the end of 2019, COVID-19 as a global epidemic virus has not only caused damage tothe world economy, the number of deaths from the virus is also kept rising. The stock marketprovides a significant signal to financial and economic sectors for hundreds of years.Accordingly, many studies have linked the stock market with the epidemic. In this paper, anevent study method will be conducted based on the semi-strong form of an efficient markethypothesis to explore similar topics. The purpose of this study is to discuss how the news relatedto the epidemic of COVID-19 affects the stock market, and whether the trajectory of theseeffects is similar to that of the previous studies for macroeconomic news. According to theresearch results, we find that the news related to COVID-19 is consistent with two commonpatterns of macroeconomic news, which are positive news have a positive correlation with thestock price while negative news cause turmoil. News does not only affect the domestic stockmarket but also affects the stock prices of other countries. But we also find one pattern ofCOVID-19 news is opposite to that of other macro news, that is, the extent of the impact ofpositive news related to COVID-19 is greater than that of negative news.

Place, publisher, year, edition, pages
2021. , p. 50
Keywords [en]
COVID-19, stock market, event study, abnormal return, pandemics
National Category
Economics and Business
Identifiers
URN: urn:nbn:se:hj:diva-52581ISRN: JU-IHH-FÖA-2-20211257OAI: oai:DiVA.org:hj-52581DiVA, id: diva2:1558589
Subject / course
JIBS, Business Administration
Examiners
Available from: 2021-06-15 Created: 2021-05-31 Last updated: 2021-06-15Bibliographically approved

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