scholarly journals How Did The Financial Markets Respond to The COVID-19 Pandemic? Empirical Evidence from BRICS Countries

ETIKONOMI ◽  
2021 ◽  
Vol 20 (2) ◽  
pp. 429-442
Author(s):  
Kavita Chavali ◽  
Hazem Al Samman ◽  
Syed Jamil
Keyword(s):  
Financial Markets ◽  
Empirical Evidence ◽  
Financial Market ◽  
Stock Prices ◽  
Stock Markets ◽  
Market Response ◽  
Second Phase ◽  
Share Prices ◽  
Brics Countries ◽  
Study Results

The paper aims to evaluate the reaction of stock markets in BRICS countries (Brazil, Russia, India, China, and South Africa) to the outbreak of the COVID-19 pandemic. The study uses ARCH and GARCH models that use daily stock prices from January 1, 2020, to September 2, 2020. The financial market response was analyzed in two phases. The first phase analyses the financial markets' response within 30 to 60 days from the first day of confirmed cases of COVID-19. The second phase analyses the financial market response post 30 to 60 days of initial confirmed cases. The study results conclude that the share prices decreased, but in the second phase, the markets responded positively. Our results conclude that governmental support played an important role in mitigating the repercussions of the COVID-19 outbreak on stock markets in BRICS countries.JEL Classification: E44, G15, G10How to Cite:Chavali, K., Al Samman, H., & Jamil, S. A. (2021). How Did The Financial Markets Respond to The Covid-19 Pandemic? Empirical Evidence from BRICS Countries. Etikonomi, 20(2), xx– xx. https://doi.org/10.15408/etk.v20i2.20339.

Review of top five financial markets during the pandemic times

2021 ◽  
pp. 2131001
Author(s):  
Tahir Mumtaz Awan ◽  
Jamal Maqsood
Keyword(s):  
Financial Markets ◽  
Financial Market ◽  
Market News ◽  
Stock Markets ◽  
Stock Exchanges ◽  
Future Market ◽  
Virus Origin ◽  
The World ◽  
Global Stock Markets ◽  
Global Stock

The purpose of this paper is to jot down the devastating impacts of COVID-19 towards the top five financial markets of the world and to see how they reacted back in different phases of COVID-19 from start till July 2020. The review is based on the financial market news, blogs, the governmental, and other financial bodies’ websites. The effects of the pandemic are like the damage never seen before in a much shorter time, vanishing a quarter portion of wealth in about a month and creating continuous uncertainties for investors throughout. China despite being the virus origin still performed well and better among all top markets whereas the rest all the stock exchanges remained inconsistent. This paper is the first of its kind to review the COVID-19 effects on the top five global stock markets and the governmental responses towards them. The study along with contributing to the existing literature is also assisting investors, analysts, specialists, and authorities to analyze their opinions w.r.t. stock markets performances, government responses, and their future market-related decisions.

scholarly journals Factors Affecting Service Share Prices at Amman Stock Exchange

2019 ◽  
Vol 14 (7) ◽  
pp. 149
Author(s):  
Abdul Aziz Farid Saymeh ◽  
Rashed Mohamad Salameh
Keyword(s):  
Stock Prices ◽  
Stock Exchange ◽  
Market Value ◽  
Cash Flows ◽  
Return On Assets ◽  
Factors Affecting ◽  
Share Prices ◽  
Service Companies ◽  
Study Results ◽  
Amman Stock Exchange

The research objective was to identify the determinants of services stock prices. Research community was represented by the service companies listed in Jordan’s Amman Stock Exchange (ASE). The companies were selected to whose shares continued trading during the study period (2010-2015). The study sample was composed of (27) shareholding companies which were listed on the Amman Stock Exchange (ASE) during the afore mentioned period. The study results revealed that there was a significant impact of the factors selected such as: profits (distributed profits, return on assets and net cash flows from operations) on the market value of service companies share prices listed on ASE. The study recommended that further studies ought to be conducted to specify the factors that might affect the market value of listed companies’ shares.

scholarly journals Stock prices, uncertainty and risks: Evidence from developing and advanced economies

2020 ◽  
Vol 9 (3) ◽  
pp. 265-279
Author(s):  
Mary Elena Sánchez Gabarre
Keyword(s):  
Economic Policy ◽  
Stock Market ◽  
Stock Prices ◽  
Stock Markets ◽  
Developed Countries ◽  
Market Volatility ◽  
Policy Uncertainty ◽  
Stock Market Volatility ◽  
Share Prices ◽  
Geopolitical Risks

This paper studies the relationship between stock prices and three types of uncertainty: economic policy uncertainty, stock market volatility, and geopolitical risks. In particular, our aim is to determine whether these forms of uncertainty play the same role in developed and developing countries. With this purpose, we take Spain and Brazil as representative cases. In order to provide new insights into the abovementioned relationship, a cointegration approach is applied, specifically an ARDL model, using monthly data from the period January 2006-December 2019 for a series of financial and macroeconomic variables. The results obtained reveal that there is no uniform effect of uncertainty in stock markets of developing and developed countries. First, in Spain, there is a high perception of uncertainty in economic policy and stock market volatility, which impact negatively in share prices, both in the short and long term. Regarding Brazil, the global uncertainty in the stock markets has effects on share prices, in both time horizons. By contrast, geopolitical risks do not show any significant impact on Brazilian and Spanish share returns.

scholarly journals The Granular Nature of Large Institutional Investors

2021 ◽  
Author(s):  
Itzhak Ben-David ◽  
Francesco Franzoni ◽  
Rabih Moussawi ◽  
John Sedunov
Keyword(s):  
United States ◽  
Financial Markets ◽  
Empirical Evidence ◽  
Institutional Investors ◽  
Stock Prices ◽  
Equity Markets ◽  
The United States ◽  
Price Impact ◽  
Idiosyncratic Shocks

Large institutional investors own an increasing share of the equity markets in the United States. The implications of this development for financial markets are still unclear. The paper presents novel empirical evidence that ownership by large institutions predicts higher volatility and greater noise in stock prices as well as greater fragility in times of crisis. When studying the channel, we find that large institutional investors exhibit traits of granularity (i.e., subunits within a firm display correlated behavior), which reduces diversification of idiosyncratic shocks. Thus, large institutions trade larger volumes and induce greater price impact. This paper was accepted by David Simchi-Levi, finance.

A Study on Risk Management in Financial Market

2019 ◽  
pp. 182-197
Author(s):  
Smruti Rekha Das ◽  
Kuhoo ◽  
Debahuti Mishra ◽  
Pradeep Kumar Mallick
Keyword(s):  
Risk Management ◽  
Financial Markets ◽  
Interest Rates ◽  
Financial Market ◽  
Stock Prices ◽  
Historical Data ◽  
Market Price ◽  
Business Goals ◽  
Current Price ◽  
Management Of Risk

The basic aim of risk management is to recognize, assess, and prioritize risk in order to assure that the uncertainty should not deviate from the intended purpose of the business goals. Risk can take place from various sources, which includes uncertainty in financial markets, recessions, inflation, interest rates, currency fluctuations, etc. Various methods used for this management of risk are faced with various decisions such as the market price, historical data, statistical methodologies, etc. For stock prices, the information derives from the historical data where the next price depends only upon the current price and some of the outside factors. Financial market is very risky to invest money, but the proper prediction with handling the risk will benefit a lot. Various types of risk in the financial market and the appropriate solutions to overcome the risk are analyzed in this study.

scholarly journals Jump Telegraph Processes and Financial Markets with Memory

2007 ◽  
Vol 2007 ◽  
pp. 1-19 ◽  
Author(s):  
Nikita Ratanov
Keyword(s):  
Interest Rate ◽  
Financial Markets ◽  
Financial Market ◽  
Stock Prices ◽  
Call Option ◽  
Market Models ◽  
New Class ◽  
Risk Neutral ◽  
The Interest Rate ◽  
With Memory

The paper develops a new class of financial market models. These models are based on generalized telegraph processes with alternating velocities and jumps occurring at switching velocities. The model under consideration is arbitrage-free and complete if the directions of jumps in stock prices are in a certain correspondence with their velocity and with the behaviour of the interest rate. A risk-neutral measure and arbitrage-free formulae for a standard call option are constructed. This model has some features of models with memory, but it is more simple.

Chaos and nonlinear forecastability in economics and finance

1994 ◽  
Vol 348 (1688) ◽  
pp. 397-404 ◽  
Keyword(s):  
Time Series ◽  
Financial Markets ◽  
Empirical Evidence ◽  
Financial Market ◽  
Chaotic Dynamics ◽  
Economic Research ◽  
Nonlinear Modelling ◽  
Market Participants ◽  
The Impact ◽  
Market Perspective

Both academic and applied researchers studying financial markets and other economic series have become interested in the topic of chaotic dynamics. The possibility of chaos in financial markets opens important questions for both economic theorists as well as financial market participants. This paper will clarify the empirical evidence for chaos in financial markets and macroeconomic series emphasizing what exactly is known about these time series in terms of forecastability and chaos. We also compare these two concepts from a financial market perspective contrasting the objectives of the practitioner with those of the economic researchers. Finally, we will speculate on the impact of chaos and nonlinear modelling on future economic research.

Economic growth and drivers of stock returns

2021 ◽  
pp. 61-77
Author(s):  
Jesper Rangvid
Keyword(s):  
Economic Growth ◽  
Stock Market ◽  
Stock Returns ◽  
Empirical Evidence ◽  
Stock Prices ◽  
Economic Activity ◽  
Share Prices ◽  
Earnings Per Share ◽  
Buy Back

This chapter studies how yields, growth, and valuation changes, introduced in the previous chapter, relate to economic activity in the long run.The chapter discusses reasons why there could be a relation between drivers of stock returns and economic growth in the first place. It also presents the empirical evidence. Aggregate earnings has historicallylined up with growth in total economic activity.Also, GNP per capitahas grown alongside stock prices, dividends per share, and earnings per share. Since the 1980s, though, share prices have risen relative to earnings and dividends, partly because firms have used earnings to buy back shares. Similarly, the aggregate value of the stock market has outpaced aggregate GDP during recent decades. The chapter discusses potential explanations.

scholarly journals THE IMPACT OF CORONAVIRUS ON FINANCIAL MARKETS OF DEVELOPED COUNTRIES

2021 ◽  
pp. 25-33
Author(s):  
Mehjbeen
Keyword(s):  
Financial Markets ◽  
Financial Market ◽  
Capital Market ◽  
Financial Stability ◽  
Money Market ◽  
World Health ◽  
Future Research ◽  
Time Interval ◽  
Study Results ◽  
The Impact

According to the World Health Organization, tens of millions of confirmed cases and hundreds of thousands of confirmed deaths have been registered worldwide. COVID-19, a kind of coronavirus, has emerged as one of the most serious dangers to the global economy and financial markets in human history. The Covid-19 virus's introduction has caused a global reduction in economic activity, perhaps posing new dangers to financial stability. This study aims to look into and reveal the effect of coronavirus on two financial markets. Ten advanced countries' capital market and money market data with the time interval from March 2020 to November 2020 has been used in this study. Six indices of these financial market Shares, Mutual Funds, Treasury Bills, Certificates of Deposits, Bonds, and Mortgages worked as samples. The research has been conducted on advanced nations USA, Norway, Canada, Germany, Ireland, Sweden, Singapore, Netherlands, Australia, and Switzerland. Panel Regression Analysis, Spearman's rank correlation, and ANOVA are used to estimate the study results. The scholar constructs a weekly panel data of COVID- 19 confirmed cases and financial market indices. The second purpose is to calculate the Risk on the six chosen indices of these markets. COVAR methodology is used to measure the risks among capital market and money markets indices. Interestingly, this research noticed that all financial markets impacted by the coronavirus while the capital market has recorded maximum fluctuations and the stock market show minimum volatility. The final results give a detailed understanding of financial market indices. It will support future research on other money and Capital markets indices and investors after the Coronavirus period. KEYWORDS: Coronavirus, Financial Markets, COVAR, COVID-19 Confirmed Cases. Capital Market. Money Market, Developed economies,

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