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An investigative analysis on the effect of a pandemic on countries’ stock market indexes within Europe: A case study of (covid 19) coronavirus

Akuegbu, Chimdindu (2020) An investigative analysis on the effect of a pandemic on countries’ stock market indexes within Europe: A case study of (covid 19) coronavirus. Masters thesis, Dublin, National College of Ireland.

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Abstract

The 2019 human coronavirus pandemic (COVID-19) emerged with seemingly high transmissibility and thus contributed to unprecedented socioeconomic instability especially in the financial market. This research aims at investigating if a pandemic affects stock prices. That is if the stock market prices decreased as the number of recorded cases increased and to what extent did this occur. As an investigative experiment, panel data analysis was used to test the effect of the Covid-19 pandemic on four countries namely: Spain, France, Germany, and U.K stock markets. A Yahoo finance and John Hopkins dataset was used for this research. The dataset contained countries' stock market index prices and the number of increasing cases respectively. The dataset was imbalanced as the number obtained stock prices for Germany and U.K was less than that of France and Spain. Three model estimators under panel data analysis were compared (Pool Ordinary Least Square, Fixed effect, and Random effect) in other to obtain an unbiased result. The findings indicate that the random effect model which considers the unobserved effect to have a zero correlation with the explanatory variables as the best estimator for modeling the effect of COVID-19 pandemic of stock prices. The result showed a significant negative effect on stock prices across all countries.
Keyword: Covid19, Corona Virus, Pandemic, Stock Price (keywords)

Item Type: Thesis (Masters)
Subjects: Q Science > QA Mathematics > Electronic computers. Computer science
T Technology > T Technology (General) > Information Technology > Electronic computers. Computer science

H Social Sciences > HG Finance > Investment
Divisions: School of Computing > Master of Science in FinTech
Depositing User: Dan English
Date Deposited: 29 Jan 2021 12:45
Last Modified: 29 Jan 2021 12:57
URI: http://norma.ncirl.ie/id/eprint/4558

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