The effects of daily growth in COVID-19 deaths, cases, and governments' response policies on stock markets of emerging economies

Guven M., Cetinguc B., Güloğlu B., Çalışır F.

RESEARCH IN INTERNATIONAL BUSINESS AND FINANCE, vol.61, 2022 (SSCI) identifier identifier identifier

  • Publication Type: Article / Article
  • Volume: 61
  • Publication Date: 2022
  • Doi Number: 10.1016/j.ribaf.2022.101659
  • Journal Indexes: Social Sciences Citation Index (SSCI), Scopus, EconLit
  • Keywords: COVID-19, Government response, Emerging economies, TESTING SLOPE HOMOGENEITY, PANELS, HETEROSKEDASTICITY
  • Istanbul Technical University Affiliated: Yes


Since the beginning of COVID-19, human beings have been threatened by various aspects. As of February 14, 2022, this global pandemic has caused about 412 million cases and 5.8 million deaths worldwide. Stock markets are one of the most agile economic indicators. In this context, this study investigates how daily growth in deaths, daily growth in cases, and governmental interventions affect stock market returns in 21 emerging economies from January 22 to December 31, 2020. Our results indicate that government response policies to Covid-19 positively impact stock returns. Besides, the daily growths in deaths and cases negatively affect stock market returns. The results also indicate that government response policies also have an indirect positive effect on stock market returns by weakening the negative impact of the daily growth in COVID-19 confirmed cases and deaths.