COVID-19, government policy responses, and stock market liquidity around the world: A note

Adam Zaremba; David Y. Aharon; Ender Demir; Renatas Kizys; Dariusz Zawadka

doi:10.1016/j.ribaf.2020.101359

COVID-19, government policy responses, and stock market liquidity around the world: A note

Adam Zaremba
, David Y. Aharon
, Ender Demir
, Renatas Kizys
, Dariusz Zawadka

Department of Business and Economics

Reykjavik University

Research output: Contribution to journal › Article › peer-review

Abstract

Unprecedented non-pharmaceutical interventions targeted to curb the spread of COVID-19 exerted a dramatic impact on the global economy and financial markets. This study is the first attempt to investigate the influence of these government policy responses on global stock market liquidity. To this end, we examine daily data from 49 countries for the period January-April 2020. We demonstrate that the impact of the interventions is limited in scale and scope. Workplace and school closures deteriorate liquidity in emerging markets, while information campaigns on the novel coronavirus facilitate trading activity.

Original language	English
Article number	101359
Journal	Research in International Business and Finance
Volume	56
DOIs	https://doi.org/10.1016/j.ribaf.2020.101359
Publication status	Published - Apr 2021

Bibliographical note

Other keywords

COVID-19
Government policy responses
International financial markets
Non-pharmaceutical interventions
Novel coronavirus
Stock market liquidity
Turnover ratio

Access to Document

10.1016/j.ribaf.2020.101359

Cite this

@article{f4481368ba4449eca478bf4aa108df0f,

title = "COVID-19, government policy responses, and stock market liquidity around the world: A note",

abstract = "Unprecedented non-pharmaceutical interventions targeted to curb the spread of COVID-19 exerted a dramatic impact on the global economy and financial markets. This study is the first attempt to investigate the influence of these government policy responses on global stock market liquidity. To this end, we examine daily data from 49 countries for the period January-April 2020. We demonstrate that the impact of the interventions is limited in scale and scope. Workplace and school closures deteriorate liquidity in emerging markets, while information campaigns on the novel coronavirus facilitate trading activity.",

keywords = "COVID-19, Government policy responses, International financial markets, Non-pharmaceutical interventions, Novel coronavirus, Stock market liquidity, Turnover ratio",

author = "Adam Zaremba and Aharon, \{David Y.\} and Ender Demir and Renatas Kizys and Dariusz Zawadka",

note = "Publisher Copyright: {\textcopyright} 2020 Elsevier B.V.",

year = "2021",

month = apr,

doi = "10.1016/j.ribaf.2020.101359",

language = "English",

volume = "56",

journal = "Research in International Business and Finance",

issn = "0275-5319",

publisher = "Elsevier B.V.",

}

TY - JOUR

T1 - COVID-19, government policy responses, and stock market liquidity around the world

T2 - A note

AU - Zaremba, Adam

AU - Aharon, David Y.

AU - Demir, Ender

AU - Kizys, Renatas

AU - Zawadka, Dariusz

PY - 2021/4

Y1 - 2021/4

N2 - Unprecedented non-pharmaceutical interventions targeted to curb the spread of COVID-19 exerted a dramatic impact on the global economy and financial markets. This study is the first attempt to investigate the influence of these government policy responses on global stock market liquidity. To this end, we examine daily data from 49 countries for the period January-April 2020. We demonstrate that the impact of the interventions is limited in scale and scope. Workplace and school closures deteriorate liquidity in emerging markets, while information campaigns on the novel coronavirus facilitate trading activity.

AB - Unprecedented non-pharmaceutical interventions targeted to curb the spread of COVID-19 exerted a dramatic impact on the global economy and financial markets. This study is the first attempt to investigate the influence of these government policy responses on global stock market liquidity. To this end, we examine daily data from 49 countries for the period January-April 2020. We demonstrate that the impact of the interventions is limited in scale and scope. Workplace and school closures deteriorate liquidity in emerging markets, while information campaigns on the novel coronavirus facilitate trading activity.

KW - COVID-19

KW - Government policy responses

KW - International financial markets

KW - Non-pharmaceutical interventions

KW - Novel coronavirus

KW - Stock market liquidity

KW - Turnover ratio

UR - https://www.scopus.com/pages/publications/85099504897

U2 - 10.1016/j.ribaf.2020.101359

DO - 10.1016/j.ribaf.2020.101359

M3 - Article

SN - 0275-5319

VL - 56

JO - Research in International Business and Finance

JF - Research in International Business and Finance

M1 - 101359

ER -

COVID-19, government policy responses, and stock market liquidity around the world: A note

Abstract

Bibliographical note

Other keywords

Access to Document

Fingerprint

Cite this