{Reference Type}: Journal Article
{Title}: How does Covid-19 affect global equity markets?
{Author}: Hui ECM;Chan KKK;Hui ECM;Chan KKK;
{Journal}: Financ Innov
{Volume}: 8
{Issue}: 1
{Year}: 2022
{Factor}: 6.793
{DOI}: 10.1186/s40854-021-00330-5
{Abstract}: This study applies OLS, panel regression and Granger causality test to investigate the impact of the Coronavirus disease 2019 (Covid-19) outbreak on the global equity markets during the early stage of the pandemic. We find that the Covid-19 outbreak has a significant negative impact on the overall equity index return of the eight economies even at 0.1% significance level. Furthermore, the pandemic has a more significant impact on the European countries than on the East Asian economies. The results have three main implications. Firstly, policy makers should react fast to mitigate the impact of a crisis. Secondly, investors should be aware of an outbreak of disease or other risks and adjust their investments accordingly. Furthermore, the Covid-19 outbreak results in a shift of power from the west to the east.