COVID-19 lockdowns, stimulus packages, travel bans, and stock returns

Paresh Kumar Narayan, Dinh Phan () and Guangqiang Liu

Finance Research Letters, 2021, vol. 38, issue C

Abstract: This paper examines the effect of government responses of G7 countries to the coronavirus pandemic (COVID-19) on stock market returns. Using time-series data, we show that lockdowns, travel bans, and economic stimulus packages all had a positive effect on the G7 stock markets. However, lockdowns were most effective in cushioning the effects of COVID-19. Our results are robust to different measures of returns and controls for other factors of returns.

Keywords: COVID-19; Stock markets; G7 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (69)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:38:y:2021:i:c:s154461232030934x

DOI: 10.1016/j.frl.2020.101732

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