STRINGENCY INDEX AND STOCK MARKET RETURN AMIDST COVID-19 PANDEMIC: EVIDENCE FROM EMERGING STOCK MARKET COUNTRIES
COVID-19 has been rapidly spread worldwide since March 2020 and has caused uncertainty in many sectors, including stock market. Aligned with the previous studies, Government responses toward the crisis are matter in offsetting the effects of the pandemic. Henceforth, we examine the relationship o...
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| Format: | Final Project |
| Language: | Indonesia |
| Online Access: | https://digilib.itb.ac.id/gdl/view/61163 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | COVID-19 has been rapidly spread worldwide since March 2020 and has caused uncertainty
in many sectors, including stock market. Aligned with the previous studies, Government
responses toward the crisis are matter in offsetting the effects of the pandemic. Henceforth,
we examine the relationship of Stock market return with lockdown policies amidst the
pandemic. In specific, this study analyses COVID-19 Government Response Stringency
Index, as the primary drivers of stock market movements, and add other country-level
indicators are as a control variable. We focus on emerging stock market countries since it has
been a number one alternative for global investors diversified their portfolios. Moreover,
there is still lack of extend research on how Government’s role affects the stock market return
in selected countries during the 1-year of COVID-19 pandemic. In total, there are 26
emerging stock markets’ monthly return within a period from March 2020 to February 2021,
employed in this research. It is believed that the Index has a negative significant relationship
with the stock markets’ return. |
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