Market Reaction to COVID-19 and Policy Response Across Different Sectors: An Event Study on ASEAN Stock Market
The purpose of the study is to investigate the market reaction to COVID-19 and the policy response in the ASEAN stock market. The subjects of this study are companies located in ASEAN countries (Indonesia, Malaysia, Thailand, the Philippines, and Vietnam) as many as 2349 companies. The basic methodo...
Saved in:
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | Russian |
| Published: |
Government of the Russian Federation, Financial University
2024-03-01
|
| Series: | Финансы: теория и практика |
| Subjects: | |
| Online Access: | https://financetp.fa.ru/jour/article/view/2676 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1849242249848684544 |
|---|---|
| author | D. Lesmana R. Yudaruddin |
| author_facet | D. Lesmana R. Yudaruddin |
| author_sort | D. Lesmana |
| collection | DOAJ |
| description | The purpose of the study is to investigate the market reaction to COVID-19 and the policy response in the ASEAN stock market. The subjects of this study are companies located in ASEAN countries (Indonesia, Malaysia, Thailand, the Philippines, and Vietnam) as many as 2349 companies. The basic methodology of this research uses the event study method using CAR (Cumulative Abnormal Return) as a measure of market reaction. We also regressed the effect of firm characteristics (SIZE, ROA, LEV, CASH, AGE) on market reaction. According to the paper’s results, the ASEAN stock market reacted negatively to the announcement of COVID-19 cases and deaths. In this condition, the markets in Malaysia, the Philippines, and Vietnam had the worst reactions to the pandemic outbreak. Moreover, the market negatively reacted to the policy response emphasizing the spread of this disease. We also find that several sectors also provided a negative reaction to COVID-19 and the policy response in the ASEAN stock market. In addition, the company’s characteristics significantly influenced the encouragement of market reactions to the pandemic and regulations. Practical implications were provided for policymakers regarding the need to consider market conditions in interventions in the spread of the health crisis. Investors should also consider the characteristics involved in handling the COVID-19 pandemic. |
| format | Article |
| id | doaj-art-bca00312a7f44c7fa16536066993824c |
| institution | Kabale University |
| issn | 2587-5671 2587-7089 |
| language | Russian |
| publishDate | 2024-03-01 |
| publisher | Government of the Russian Federation, Financial University |
| record_format | Article |
| series | Финансы: теория и практика |
| spelling | doaj-art-bca00312a7f44c7fa16536066993824c2025-08-20T03:59:53ZrusGovernment of the Russian Federation, Financial UniversityФинансы: теория и практика2587-56712587-70892024-03-01281304210.26794/2587-5671-2024-28-1-30-421110Market Reaction to COVID-19 and Policy Response Across Different Sectors: An Event Study on ASEAN Stock MarketD. Lesmana0R. Yudaruddin1Research and Development AgencyMulawarman UniversityThe purpose of the study is to investigate the market reaction to COVID-19 and the policy response in the ASEAN stock market. The subjects of this study are companies located in ASEAN countries (Indonesia, Malaysia, Thailand, the Philippines, and Vietnam) as many as 2349 companies. The basic methodology of this research uses the event study method using CAR (Cumulative Abnormal Return) as a measure of market reaction. We also regressed the effect of firm characteristics (SIZE, ROA, LEV, CASH, AGE) on market reaction. According to the paper’s results, the ASEAN stock market reacted negatively to the announcement of COVID-19 cases and deaths. In this condition, the markets in Malaysia, the Philippines, and Vietnam had the worst reactions to the pandemic outbreak. Moreover, the market negatively reacted to the policy response emphasizing the spread of this disease. We also find that several sectors also provided a negative reaction to COVID-19 and the policy response in the ASEAN stock market. In addition, the company’s characteristics significantly influenced the encouragement of market reactions to the pandemic and regulations. Practical implications were provided for policymakers regarding the need to consider market conditions in interventions in the spread of the health crisis. Investors should also consider the characteristics involved in handling the COVID-19 pandemic.https://financetp.fa.ru/jour/article/view/2676covid-19market reactionaseansectorpolicy responseevent study |
| spellingShingle | D. Lesmana R. Yudaruddin Market Reaction to COVID-19 and Policy Response Across Different Sectors: An Event Study on ASEAN Stock Market Финансы: теория и практика covid-19 market reaction asean sector policy response event study |
| title | Market Reaction to COVID-19 and Policy Response Across Different Sectors: An Event Study on ASEAN Stock Market |
| title_full | Market Reaction to COVID-19 and Policy Response Across Different Sectors: An Event Study on ASEAN Stock Market |
| title_fullStr | Market Reaction to COVID-19 and Policy Response Across Different Sectors: An Event Study on ASEAN Stock Market |
| title_full_unstemmed | Market Reaction to COVID-19 and Policy Response Across Different Sectors: An Event Study on ASEAN Stock Market |
| title_short | Market Reaction to COVID-19 and Policy Response Across Different Sectors: An Event Study on ASEAN Stock Market |
| title_sort | market reaction to covid 19 and policy response across different sectors an event study on asean stock market |
| topic | covid-19 market reaction asean sector policy response event study |
| url | https://financetp.fa.ru/jour/article/view/2676 |
| work_keys_str_mv | AT dlesmana marketreactiontocovid19andpolicyresponseacrossdifferentsectorsaneventstudyonaseanstockmarket AT ryudaruddin marketreactiontocovid19andpolicyresponseacrossdifferentsectorsaneventstudyonaseanstockmarket |