COVID-19 and its short-term informational impact on the stock markets of the Pacific Alliance countries

Carlos David Cardona-Arenas, Rafael Gómez-Gómez () and Eliana Morales-Zuluaga ()
Additional contact information
Rafael Gómez-Gómez: Universidad de Manizales
Eliana Morales-Zuluaga: Universidad de Manizales

SN Business & Economics, 2023, vol. 3, issue 5, 1-23

Abstract: Abstract The processes of localisation and investment optimisation present a challenge when it comes to emerging markets. The phenomena of low diversification and efficiency in some economies do not allow structurers to adequately visualize the dynamics and risks involved. This article aims to establish, by means of a recursive VAR, the transitive impacts that exist between the stock markets of the countries that make up the Pacific Alliance: Chile, Colombia, Mexico and Peru. The findings show that Mexico and Chile are the markets with the greatest depth and liquidity and are therefore the first to react to a random and exogenous shock such as the one caused by the informational impact of COVID-19, while the markets of Colombia and Peru experience a high degree of dependence on the impacts caused in the markets of countries with higher levels of efficiency and depth.

Keywords: Public media coverage; Portfolios; Emerging countries; COVID-19; VAR models (search for similar items in EconPapers)
JEL-codes: C1 C5 G0 G1 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s43546-023-00469-6 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:snbeco:v:3:y:2023:i:5:d:10.1007_s43546-023-00469-6

Ordering information: This journal article can be ordered from
https://www.springer.com/journal/43546

DOI: 10.1007/s43546-023-00469-6

Access Statistics for this article

SN Business & Economics is currently edited by Gino D'Oca

More articles in SN Business & Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().