Comparing the Impacts of Past Major Events on the Network Topology Structure of the Malaysian Consumer Products and Services Sector

Alyssa April Dellow, Munira Ismail, Hafizah Bahaludin and Fatimah Abdul Razak ()
Additional contact information
Alyssa April Dellow: Universiti Kebangsaan Malaysia
Munira Ismail: Universiti Kebangsaan Malaysia
Hafizah Bahaludin: Kulliyyah of Science, International Islamic University Malaysia, Bandar Indera Mahkota Campus
Fatimah Abdul Razak: Universiti Kebangsaan Malaysia

Journal of the Knowledge Economy, 2025, vol. 16, issue 1, No 34, 925-967

Abstract: Abstract Financial networks can be built to observe complex stock market dynamics through the analysis of stock closing price data. In this study, networks of three major events are constructed to compare their impacts on the Consumer Products and Services sector of Bursa Malaysia. Using the threshold method, the 2008 global financial crisis, 2015 stock market crash in China and COVID-19 pandemic networks are built upon 134, 156 and 162 stocks respectively. To comprehend embedded network structures during volatile periods of time, topological properties of the networks are examined. Consequently, this study reveals that stock market networks tend to have high global clustering coefficient values as they herd together during major events. The networks also have small average path lengths, leading to the revelation that this sector of the market possesses small-world properties. Furthermore, fluctuations in the magnitude of negative correlation coefficients are found as a good indicator of triggering events taking place. Networks in the Malaysian stock market tend to have heavy-tailed degree distributions that signify the presence of hubs. While the Travel, Leisure and Hospitality subsector emerges as the epicenter of the sector during normal and calm periods, the hubs identified via centrality measures have a tendency to shift over time, reflecting an evolving market structure. Overall, the impacts brought forth by COVID-19 are more drastic than that of the other two major events. In exploring the intrinsic properties of the Malaysian stock market, the right measures in administering market policies and making data-driven portfolio decisions can be made.

Keywords: Financial network; Threshold method; Malaysian stock market; Global financial crisis; Stock market crash; COVID-19 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s13132-024-02038-0 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:jknowl:v:16:y:2025:i:1:d:10.1007_s13132-024-02038-0

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/13132

DOI: 10.1007/s13132-024-02038-0

Access Statistics for this article

Journal of the Knowledge Economy is currently edited by Elias G. Carayannis

More articles in Journal of the Knowledge Economy from Springer, Portland International Center for Management of Engineering and Technology (PICMET)
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().