Exactly want to know the ways and variables to measure the impact of Covid-19 on the Stock Market.
Dear Tarik Hossain ,
For example, you can use even study as it is done in the following paper:
He, P., Sun, Y., Zhang, Y., & Li, T. (2020). COVID–19’s impact on stock prices across different sectors—An event study based on the Chinese stock market. Emerging Markets Finance and Trade, 56(10), 2198-2212.
Or analyze market indices, like it is done in:
Topcu, M., & Gulal, O. S. (2020). The impact of COVID-19 on emerging stock markets. Finance Research Letters, 36, 101691.
You can also analyze abnormal returns:
Harjoto, M. A., Rossi, F., & Paglia, J. K. (2020). COVID-19: Stock market reactions to the shock and the stimulus. Applied Economics Letters, 1-7.
Or use a natural experiment:
Al-Awadhi, A. M., Alsaifi, K., Al-Awadhi, A., & Alhammadi, S. (2020). Death and contagious infectious diseases: Impact of the COVID-19 virus on stock market returns. Journal of behavioral and experimental finance, 27, 100326.
Good luck with your research!
More than 200 countries are suffering from the COVID-19 pandemic, affecting both the health and economic sectors in the world economy. The Dow Jones and Standard & Poor’s showed that the share values of corporations in the U.S. dropped by 20% since mid-March 2020.
Indeed, the effects of covid-19 still not clear.
Comparing performances of the companies and therefore their returns.
Try to measure using an index.
I think the only way to have such research is to conduct survey manually
To answer your question. You can read my research paper link given below.
Article A Market Intelligence Study on Indian Enterprises Financial ...
You can look at an events study analysis of stock prices of selected companies using a date of interest. Eg. Date of first announcement of covid on the stock exchang,etc and identify if price changes have occurred prior or after that date.
(1) Take two date/data starting pouints for the specific stock market which you wish to study...i.e. the date when that country first started speaking about, or vaccinating, or taking as a national crisis, th advent of COVID-19..
(2) Choose which types of stocks you wish to base your research on/about.
(3) Obtain as much dta as you can for during the whole of the chosen period.
(4) Calculate price movements, and render into Tables, graps, piecharts, etc.
(5) Read as many reports as you can regarding that particular market's movements during your chosen period.
(6) Study and analyse and comment upon the resulting findings.
Dr. John Consiglio.
Dear Prof. Bestoon Faraj . I hope you are fine. What about the quantitative evaluation! Hundreds of articles have been written around this issue using quantitative techniques so far.
In my country all publicly listed companies have to publish annual reports in the local newspapers, as well as send copies of their Annual Reposts and Accounts to their shareholders. Since the start of the pandemic practically all companies have had their business impacted by the pandemic, and all companies have in fact been regularly including references to the way that the pandemic has effected the levels of their business. But the way that such references are made often fail to include any data-based and supported figures.
When it comes to articles in the media, to the best of my knowledge very few of these are at all comparable with academic articles in peer-reviewed journals in terms of statistical data supporting any stances.
Dr. John Consiglio
The University of Malta
I think the question is too common. You should clarify in which dimension you want to measure. For example, the covid affected to the financial aspect, it really hurt the company performance, especially in the tourism industry. However, the impact of covid 19 that we notice on stock price (even travel company) is entirely opposite.
This should not be an impossible task.
It is essentially an exercise in collating enough by way of (economic statistical history?) data in whatever areas you wish to research.
And then, once the data is collected, attentive and smart analysis of it.
For examples:
-How companies fared in terms of profits, dividends given, productivity, etc?
- Employment/Unemployment elements
- Public finances (debts, borrowing)
- Financial markets activities.
- Demographic developments.
It is both a relatively easy as well as potentially overwhelming exercise given its available size and spread.
Dr. John Consiglio
The Universty of Malta
Tarik Hossain
Dear Professor,
Thank you for the interesting question.
It is difficult to directly measure the impact of COVID-19 on the stock market. To some extent, it can be done by keeping track of the growth rate of prices of stocks in certain industries which can be directly linked to this pandemic. Examples of these industries may include pharmaceutical industries, research and development, healthcare etc. Again, there are some industries that have been impacted adversely by this pandemic like education, training, consultancy etc. If an effort is made to study the prices of these stocks, then we may get closer to the topic of research suggested here.
We can get the data about the date wise numbers of cases in a region and try to establish a statistical relation with the prices of stocks in those dates.
Best regards,
Anamitra.
You may get the stock market statistics before Covid and during Covid periods and carry out a comparative study to evaluate the effect.