The Effect of Covid-19 on Stock Market: Evidence from Emerging Markets

Year 2022, , 776 - 793, 22.08.2022

Mahmut Sami Duran , Sevilay Konya

https://doi.org/10.21076/vizyoner.1018852

Cited By: 1

Abstract

It is known that extraordinary events such as epidemics, political events, and earthquakes have impacts on stock market returns. The study aims to explain the impact of Covid-19 outbreak on stock market returns in emerging market economies. Therefore, in the study, two different models are established to measure the impact of both Covid-19 cases and deaths related to Covid-19. In the study, Arellano, Froot and Rogers Random Effects Estimator and Arellano–Bond GMM Estimator are applied. As a result of the study, according to Arellano, Froot and Rogers Random Effects Estimator results, it is determined that Covid-19 cases have a positive and significant effect on the stock market. However, according to the Arellano–Bond GMM Estimator results, no significant effect of Covid-19 cases on the stock market is found. The effect of Covid-19 deaths on the stock market index is determined as positive and statistically significant according to both Arellano, Froot and Rogers Random Effects Estimator and Arellano Bond estimator.

Keywords

Covid-19, Stock Market, Emerging Market

Kovid-19’un Borsaya Etkisi: Gelişmekte Olan Piyasalardan Kanıtlar

Abstract

Salgın, siyasi olaylar, deprem gibi olağanüstü durumların borsa getirileri üzerinde etkisi olduğu bilinmektedir. Bu çalışma, yükselen piyasa ekonomilerinde Kovid-19 salgınının borsa getirileri üzerindeki etkisini açıklamayı amaçlamaktadır. Bu nedenle çalışmamızda hem Kovid-19 vakalarının hem de Kovid-19’a bağlı ölümlerin etkisini ölçmek amacıyla iki ayrı model kurulmuştur. Çalışmamızda Arellano, Froot ve Rogers Tesadüfi Etkiler Tahmincisi ve Arellano–Bond GMM Tahmincisi uygulanmıştır. Çalışmanın sonucunda Arellano, Froot ve Rogers Tesadüfi Etkiler Tahmincisi sonuçlarına göre Kovid- 19 vakalarının borsa piyasası üzerinde pozitif ve anlamlı bir etkisi olduğu belirlenmiştir. Ancak Arellano–Bond GMM Tahmincisi sonuçlarına göre kovid-19 vakalarının borsa piyasası üzerinde anlamlı bir etkisi bulunamamıştır. Kovid-19 ölümlerinin borsa endeksi üzerindeki etkisi ise hem Arellano, Froot ve Rogers Tesadüfi Etkiler Tahmincisi hem de Arellano Bond tahmincisine göre pozitif ve istatiksel olarak anlamlı belirlenmiştir.

Keywords

Kovid-19, Borsa, Gelişmekte Olan Piyasalar

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