Which COVID-19 information really impacts stock markets?

Jan Jakub Szczygielski, Ailie Charteris, Princess Rutendo Bwanya, Janusz Brzeszczyński*

*Corresponding author for this work

    Research output: Contribution to journalArticlepeer-review

    31 Citations (Scopus)
    29 Downloads (Pure)

    Abstract

    Information about COVID-19 abounds, but which COVID-19 data actually impacts stock prices? We investigate which measures of COVID-19 matter most by applying elastic net regression for measure selection using a sample of the 35 largest stock markets. Out of 24 measures, COVID-19 related Google search trends, the stringency of government responses and media hype prevail. These measures proxy for COVID-19 related uncertainty, the economic impact of lockdowns and panic-driven media attention respectively, summarizing key aspects of COVID-19 that move stock markets. Moreover, geographical proximity to the virus’s outbreak and a country’s development level also matter in terms of impact.
    Original languageEnglish
    Article number101592
    JournalJournal of International Financial Markets, Institutions and Money
    Volume84
    Early online date27 May 2022
    DOIs
    Publication statusPublished - 1 Apr 2023

    UN SDGs

    This output contributes to the following UN Sustainable Development Goals (SDGs)

    1. SDG 3 - Good Health and Well-being
      SDG 3 Good Health and Well-being

    Keywords

    • COVID-19
    • pandemic
    • returns
    • global stock markets
    • elastic net regression
    • machine learning

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