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

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

Research in International Business and Finance, 2021, vol. 56, issue C

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: Novel coronavirus; COVID-19; Stock market liquidity; Turnover ratio; Non-pharmaceutical interventions; Government policy responses; International financial markets (search for similar items in EconPapers)
JEL-codes: G01 G12 G15 G18 H12 H51 I18 Q54 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (50)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:56:y:2021:i:c:s0275531920309673

DOI: 10.1016/j.ribaf.2020.101359

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