The COVID-19 outbreak and stock market reactions: Evidence from Australia

Title: The COVID-19 outbreak and stock market reactions: Evidence from Australia
Creator: Rahman, Md Lutfur; Amin, Abu; Al Mamun, Mohammed Abdullah
Relation: Finance Research Letters Vol. 38, Issue January 2021, no. 101832
Publisher Link: http://dx.doi.org/10.1016/j.frl.2020.101832
Publisher: Academic Press
Resource Type: journal article
Date: 2021
Description: We examine how the Australian stock market responded to the uncertainties created by the COVID-19 pandemic and whether the stimulus package offered by the Government helped restore confidence in the market. This study finds a negative stock market reaction to the pandemic announcement, however, among two stimulus packages related announcements, the market reacted positively only to “JobKeeper” package. The cross-sectional results suggest that the smallest, least profitable and value portfolios suffered more during the pandemic. Finally, size and liquidity are found to be the significant drivers of abnormal returns. These results generally hold for a battery of robustness checks.
Subject: coronavirus; covid-19; Australian stock market; government stimulus package; JobKeeper package; SDG 3; Sustainable Development Goals
Identifier: http://hdl.handle.net/1959.13/1446121
Identifier: uon:42770
Identifier: ISSN:1544-6123
Language: eng
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