IJSSER

Title: COVID’19 AND ITS INITIAL SIGNALING EFFECTS ON THE STOCK MARKETS OF INDIA, SWITZERLAND, TAIWAN AND BRAZIL- A COMPARATIVE ANALYSIS OF THE CHANGE IN THE STOCK MARKET INDICES DURING THE INITIAL PERIOD OF PANDEMIC IN THE RESPECTIVE COUNTRIES
Authors: Ms. Jasmine Mehta and Ms. Paridhi Singhania
\|\| \|\|
Ms. Jasmine Mehta and Ms. Paridhi Singhania MIT World Peace university
MLA 8 Mehta, Ms. Jasmine, and Ms. Paridhi Singhania. "COVID’19 AND ITS INITIAL SIGNALING EFFECTS ON THE STOCK MARKETS OF INDIA, SWITZERLAND, TAIWAN AND BRAZIL- A COMPARATIVE ANALYSIS OF THE CHANGE IN THE STOCK MARKET INDICES DURING THE INITIAL PERIOD OF PANDEMIC IN THE RESPECTIVE COUNTRIES." Int. j. of Social Science and Economic Research, vol. 5, no. 10, Dec. 2020, pp. 2940-2984, doi:10.46609/IJSSER.2020.v05i10.012. Accessed Oct. 2020. APA 6 Mehta, M., & Singhania, M. (2020, December). COVID’19 AND ITS INITIAL SIGNALING EFFECTS ON THE STOCK MARKETS OF INDIA, SWITZERLAND, TAIWAN AND BRAZIL- A COMPARATIVE ANALYSIS OF THE CHANGE IN THE STOCK MARKET INDICES DURING THE INITIAL PERIOD OF PANDEMIC IN THE RESPECTIVE COUNTRIES. Int. j. of Social Science and Economic Research, 5(10), 2940-2984. doi:10.46609/IJSSER.2020.v05i10.012 Chicago Mehta, Ms. Jasmine, and Ms. Paridhi Singhania. "COVID’19 AND ITS INITIAL SIGNALING EFFECTS ON THE STOCK MARKETS OF INDIA, SWITZERLAND, TAIWAN AND BRAZIL- A COMPARATIVE ANALYSIS OF THE CHANGE IN THE STOCK MARKET INDICES DURING THE INITIAL PERIOD OF PANDEMIC IN THE RESPECTIVE COUNTRIES." Int. j. of Social Science and Economic Research 5, no. 10 (December 2020), 2940-2984. Accessed October, 2020. doi:10.46609/IJSSER.2020.v05i10.012.
References [1]. Bell and Gers Bach (2004). “The Long-Run Economic Costs of AIDS: A Model with an Application to South Africa. The World Bank Economic Review Vol. 20, No. 1. [2]. Brainerd and Siegers (2003). “The economic effects of the1918 influenza epidemics”, working paper 3791.Centre for economic policy research. 3. Crosby AW (2003). America’s Forgotten Pandemic: The influenza of 1918. Cambridge University Press 4. Patterson and Pyle (1991). The geography and mortality of the 1918 influenza pandemic. Bull Hist Med.Vol. 4-21, 65 5. Young (2004). “The gift of dying: The tragedy of AIDS and the welfare of future African generation" Alwyn Young Working Paper 10991, NBER, Massachusetts Avenue Cambridge [3]. https://www.marketwatch.com/story/the-stock-market-may-bottom-long-before-thecoronavirus-epidemic-peaks-analysts-say-2020-03-19(accessed on March 27, 2020) [4]. https://scholar.harvard.edu/barro/files/09_0504_pandemicsanddepressions_wsj.pdfhttps: i. Ch. 28, 2020) http://www.tat.wharton.upenn.edu/~steele/Pandemic/Resources/FidelityPandemic.pdf(accesse d on March 28, 2020). [5]. Chen, M.H., Jang, S.S. and Kim, W.G. (2007), “The impact of the SARS outbreak on Taiwanese hotel stock performance: an event-study approach”, International Journal of Hospitality Management, Vol. 26 No. 1, pp. 200-212, doi: 10.1016/j.ijhm.2005.11.004. COVID-19 lockdown on stock market performance Chen, C.D., Chen, C.C., Tang, W.W. and Huang, B.Y. (2009), “The positive and negative impacts of the SARS outbreak: a case of the Taiwan industries”, The Journal of Developing Areas, Vol. 43 No. 1, pp. 281-293, available at: https://www.jstor.org/stable/40376284. Drew, M.E. (2003), “Beta, firm size, book-to-market equity and stock returns”, Journal of the Asia Pacific Economy, Vol. 8 No. 3, pp. 354-379, doi: 10.1080/13547860306289. [6]. Eleftheriou, K. and Patsoulis, P. (2020), COVID-19 Lockdown Intensity and Stock Market Returns: A Spatial Econometrics Approach, Working Paper No. 100662, University Library of Munich, Munich. [7]. Baig, A., Butt, H.A., Haroon, O. and Rizvi, S.A.R. (2020), “Deaths, panic, lockdowns and US equity markets: the case of COVID-19 Pandemic”, Working Paper, 21 April, doi: 10.2139/ssrn.3584947.
Abstract: The world economies are highly integrated to each other. Events that occur in other economies has an impact on the stock market of a particular country. Many of the events act as financial signals and affects stock market. The purpose of this paper is to conceptualize the views and analysis of initial signalling effect of pandemic like Covid-19 on the stock markets of India, Switzerland, Taiwan and Brazil in the post pandemic declaration by World Health Organization. The number of covid-19 reported cases during initial period of pandemic has been taken for analysis with the corresponding closing price of Sensex, Swiss Market Index (SMI), TAIEX, BOVESPA as the stock market data. The market Indices are affected due to a variety of factors,but the present study aims to find the impact of only one factor that is the pandemic caused by Covid-19 on the stock markets of India, Switzerland, Taiwan and Brazil, all other factor which would have also affected the indices are assumed to be constant. Correlation is used to test if the number of cases has any impact on the respective stock markets. This exploratory study shows a strong negative correlation between these variables which is statistically significant. Furthermore, we also try to show a comparative analysis of the aggregate change in the stock market indices during the initial period of pandemic in respective countries and try to infer that, among the four countries chosen by us, whose stock market index has been affected the most through comparing the aggregate change each country has had in its stock market indices.

IJSSER is Member of