Analyzing the Impact of Government Interventions on Stock Market Volatility During the COVID-19 Pandemic

Ben Mbarek Kais

Business and Economic Research, 2025, vol. 15, issue 2, 107-131

Abstract: This study investigates the relationship between government interventions aimed at curbing the spread of the novel coronavirus (COVID-19) and stock market volatility across 67 countries. Using panel regression analysis, we examine how various non-pharmaceutical interventions influence financial market uncertainty. Using panel regression analysis, we examine how various non-pharmaceutical interventions influence financial market uncertainty. Our findings reveal that stringent policy responses significantly increase stock market volatility, independent of the direct impact of the pandemic itself. Specifically, information campaigns and public event cancellations are identified as major contributors to this phenomenon. These results highlight the dual role of government actions- mitigating health risks while simultaneously amplifying financial instability.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.macrothink.org/journal/index.php/ber/article/download/22691/17569 (application/pdf)
https://www.macrothink.org/journal/index.php/ber/article/view/22691 (text/html)

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:mth:ber888:v:15:y:2025:i:2:p:107-131

Access Statistics for this article

Business and Economic Research is currently edited by Daisy Young

More articles in Business and Economic Research from Macrothink Institute
Bibliographic data for series maintained by Technical Support Office ( this e-mail address is bad, please contact ).