scholarly journals The Unprecedented Stock Market Reaction to COVID-19

2020 ◽  
Vol 10 (4) ◽  
pp. 742-758 ◽  
Author(s):  
Scott R Baker ◽  
Nicholas Bloom ◽  
Steven J Davis ◽  
Kyle Kost ◽  
Marco Sammon ◽  
...  
Keyword(s):  
Stock Market ◽  
Market Reaction ◽  
Disease Outbreak ◽  
Stock Market Volatility ◽  
Commercial Activity ◽  
Infectious Disease Outbreak ◽  
Stock Market Reaction ◽  
Service Oriented ◽  
Spanish Flu ◽  
The U.S

Abstract No previous infectious disease outbreak, including the Spanish Flu, has affected the stock market as forcefully as the COVID-19 pandemic. In fact, previous pandemics left only mild traces on the U.S. stock market. We use text-based methods to develop these points with respect to large daily stock market moves back to 1900 and with respect to overall stock market volatility back to 1985. We also evaluate potential explanations for the unprecedented stock market reaction to the COVID-19 pandemic. The evidence we amass suggests that government restrictions on commercial activity and voluntary social distancing, operating with powerful effects in a service-oriented economy, are the main reasons the U.S. stock market reacted so much more forcefully to COVID-19 than to previous pandemics in 1918–1919, 1957–1958, and 1968.

Investor Perceptions of Potential IFRS Adoption in the United States

2012 ◽  
Vol 88 (2) ◽  
pp. 577-609 ◽  
Author(s):  
Philip P. M. Joos ◽  
Edith Leung
Keyword(s):  
United States ◽  
Stock Market ◽  
Market Reaction ◽  
The United States ◽  
Data Availability ◽  
Current Debate ◽  
Litigation Risk ◽  
Ifrs Adoption ◽  
Stock Market Reaction ◽  
The U.S

ABSTRACT This paper examines the stock market reaction to 15 events relating to IFRS adoption in the United States. The goal is to assess whether investors perceive the switch to IFRS as beneficial or costly. Our findings suggest that investors' reaction to IFRS adoption is more positive in cases where IFRS is expected to lead to convergence benefits. Our results also indicate a less positive market reaction for firms with higher litigation risk, which is consistent with investors' concerns about greater discretion and less implementation guidance under IFRS for these firms. Overall, the findings are relevant to the current debate on IFRS adoption in the U.S. and highlight the importance of convergence to investors. Data Availability:  All data are publicly available from the sources indicated in the paper (see Appendices A and B).

scholarly journals Influence of monetary information signals of the USA on the Ukrainian stock market

2020 ◽  
Vol 17 (4) ◽  
pp. 327-340
Author(s):  
Roman Pavlov ◽  
Tetiana Grynko ◽  
Tetiana Pavlova ◽  
Oksana Levkovich ◽  
Dariusz Pawliszczy
Keyword(s):  
Stock Market ◽  
Discount Rate ◽  
Market Reaction ◽  
Financial Information ◽  
Stock Index ◽  
Stock Market Volatility ◽  
Research Information ◽  
Financial Cycle ◽  
Stock Market Reaction ◽  
The Usa

The stronger the level of economic integration between countries, the greater the need to study the formation patterns of the stock market reaction to the financial information signals. This concerns the Ukrainian stock market, which is now in its infancy, and which reaction to financial information signals is sometimes ambiguous. The research aims to identify the formation patterns of return and volatility indicators of the Ukrainian stock market reaction to the US financial information signals. To assess the direct nature of US financial information signals effect on the PFTS stock index, the GARCH econometric modeling toolkit was applied. The research information base is the PFTS stock index and the Federal Reserve System financial information signals at the discount rate for 2000–2019. The fetch is divided into intervals corresponded to the ascent and decline phases of the financial cycle. It was found that an unforeseen increase in the discount rate at the financial cycle decline phase by 25 basis points decreases the PFTS stock index return, on average by 2.9%. Besides, the hypothesis about the general change stabilizing effect in the discount rate on the Ukrainian stock market volatility at the financial cycle growth phase was confirmed. Nevertheless, for investors, the most essential is the regulator’s monetary signals in the discount rate at the financial cycle decline phases rather than at the ascent phases because there is a more significant increase in the volatility level.

Cross-Border M&A Announcement and Stock Market Reaction : The Case of Korean Firms

2010 ◽  
Vol 14 (1) ◽  
pp. 1
Author(s):  
Hyunjin Sim ◽  
Woojin Yoon ◽  
Jaeyong Song
Keyword(s):  
Stock Market ◽  
Market Reaction ◽  
Cross Border ◽  
Stock Market Reaction

Dichotomous stock market reaction to episodes of rules and discretion in the US monetary policy

2018 ◽  
Vol 70 ◽  
pp. 56-66 ◽  
Author(s):  
Ion-Iulian Marinescu ◽  
Alexandra Horobet ◽  
Radu Lupu
Keyword(s):  
Monetary Policy ◽  
Stock Market ◽  
Market Reaction ◽  
Stock Market Reaction ◽  
The Us ◽  
Us Monetary Policy

The effect of slack, diversification, and time to recall on stock market reaction to toy recalls

2017 ◽  
Vol 193 ◽  
pp. 244-258 ◽  
Author(s):  
Lincoln C. Wood ◽  
Jason X. Wang ◽  
Karin Olesen ◽  
Torsten Reiners
Keyword(s):  
Stock Market ◽  
Market Reaction ◽  
Stock Market Reaction
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