Extreme Events: What Are US Stock Market Sectors Afraid of More?

Veni Arakelian

Chapter 6 in Financial Transformations Beyond the COVID-19 Health Crisis, 2022, pp 155-197 from World Scientific Publishing Co. Pte. Ltd.

Abstract: We examine the reaction of US stock market sectors to a stock market bubble, a terrorist attack, two pandemics, a financial crisis, an industrial disaster, and an unexpected positive event. Although the indices belong to the same local market and are expected to show uniform responses to shocks, the degree of stock market reactions differs significantly. Especially, with regard to the COVID-19 outbreak, there is clear evidence that the US stock market sector indices positively over-reacted to this unanticipated event. An explanation is the effect of the unconventional measures adopted immediately to combat the crisis.

Keywords: COVID19; Pandemic; Pandemic Outbreak; Health Crisis; Economics; Macroeconomics; Finance; Sustainable Finance; Financial Crisis; Financial Integration; Economic Integration; Global Financial Crisis; Financial Institutions; Corporate Finance; Corporate Governance; Board of Directors; ESG; Corporate Social Responsibility; Sustainable Finance; Stock Markets; Financial Markets; Stock Market Behaviour; Firm Liquidity; Emerging Markets; China; Financial Institutions; Money; Banks; Banking System; Banking Sector; Business Groups; Resilience; Safe Heaven; Gold; Oil; Peer-to-Peer Lending Market; Foreign Trading; Stock Market Volatility; Extreme Events (search for similar items in EconPapers)
JEL-codes: F4 F62 G15 G17 G3 O16 (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.worldscientific.com/doi/pdf/10.1142/9781800610781_0006 (application/pdf)
https://www.worldscientific.com/doi/abs/10.1142/9781800610781_0006 (text/html)
Ebook Access is available upon purchase.

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:wsi:wschap:9781800610781_0006

Ordering information: This item can be ordered from

Access Statistics for this chapter

More chapters in World Scientific Book Chapters from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().