Journal article

Authors list: Heyden, Kim J.; Heyden, Thomas

Publication year: 2021

Journal: Finance Research Letters

Volume number: 38

ISSN: 1544-6123

eISSN: 1544-6131

Open access status: Green

DOI Link: https://doi.org/10.1016/j.frl.2020.101745

Publisher: Elsevier

Abstract: 
We study the short-term market reactions of US and European stocks during the beginning of the COVID-19 pandemic. Employing an event study, we document that stocks react significantly negatively to the announcement of the first death in a given country. While our results suggest that the announcements of country-specific fiscal policy measures negatively affect stock returns, monetary policy measures have the potential to calm markets. These reactions are either intensified or lessened by firm-specific characteristics such as tangible assets, liquidity, and institutional holdings.

Harvard Citation style: Heyden, K. and Heyden, T. (2021) Market reactions to the arrival and containment of COVID-19: An event study, Finance Research Letters, 38, Article 101745. https://doi.org/10.1016/j.frl.2020.101745

APA Citation style: Heyden, K., & Heyden, T. (2021). Market reactions to the arrival and containment of COVID-19: An event study. Finance Research Letters. 38, Article 101745. https://doi.org/10.1016/j.frl.2020.101745