Uncertainty, Search Engine Data, and Stock Market Returns During a Pandemic
In recent years, a series of uncertain events, including the spread of COVID-19, has affected the Chinese stock market. When people face uncertainty, they often turn to internet search engines to obtain more information to support their investment decisions. This paper uses the uncertainty index, in...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Frontiers Media S.A.
2022-04-01
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| Series: | Frontiers in Public Health |
| Subjects: | |
| Online Access: | https://www.frontiersin.org/articles/10.3389/fpubh.2022.884324/full |
| _version_ | 1819024939485757440 |
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| author | Sheng Xu Jing Zhang Rui Shen |
| author_facet | Sheng Xu Jing Zhang Rui Shen |
| author_sort | Sheng Xu |
| collection | DOAJ |
| description | In recent years, a series of uncertain events, including the spread of COVID-19, has affected the Chinese stock market. When people face uncertainty, they often turn to internet search engines to obtain more information to support their investment decisions. This paper uses the uncertainty index, investor sentiment reflected by search engine data, and Chinese stock return data during the pandemic to examine the relationships among the three. Using daily data from March 2, 2020, to March 2, 2021, our empirical findings reveal that stock returns during a pandemic lead to an increase in investor retrieval of search engine data and that uncertainty affects stock returns during a pandemic. However, the reverse is not true. Therefore, in the face of an uncertainty such as market volatility caused by the spread of the pandemic, the active release of favorable information by regulators can help guide investor sentiment, prevent sharp stock market volatility, and improve the effectiveness of policy governance. |
| first_indexed | 2024-12-21T05:02:45Z |
| format | Article |
| id | doaj.art-27b30364cbcc4a65af38b6a08da8249d |
| institution | Directory Open Access Journal |
| issn | 2296-2565 |
| language | English |
| last_indexed | 2024-12-21T05:02:45Z |
| publishDate | 2022-04-01 |
| publisher | Frontiers Media S.A. |
| record_format | Article |
| series | Frontiers in Public Health |
| spelling | doaj.art-27b30364cbcc4a65af38b6a08da8249d2022-12-21T19:15:11ZengFrontiers Media S.A.Frontiers in Public Health2296-25652022-04-011010.3389/fpubh.2022.884324884324Uncertainty, Search Engine Data, and Stock Market Returns During a PandemicSheng Xu0Jing Zhang1Rui Shen2School of Economics, Zhejiang University of Technology, Hangzhou, ChinaSchool of Economics and Management, Southwest Jiaotong University, Chengdu, ChinaSchool of Economics, Zhejiang University of Technology, Hangzhou, ChinaIn recent years, a series of uncertain events, including the spread of COVID-19, has affected the Chinese stock market. When people face uncertainty, they often turn to internet search engines to obtain more information to support their investment decisions. This paper uses the uncertainty index, investor sentiment reflected by search engine data, and Chinese stock return data during the pandemic to examine the relationships among the three. Using daily data from March 2, 2020, to March 2, 2021, our empirical findings reveal that stock returns during a pandemic lead to an increase in investor retrieval of search engine data and that uncertainty affects stock returns during a pandemic. However, the reverse is not true. Therefore, in the face of an uncertainty such as market volatility caused by the spread of the pandemic, the active release of favorable information by regulators can help guide investor sentiment, prevent sharp stock market volatility, and improve the effectiveness of policy governance.https://www.frontiersin.org/articles/10.3389/fpubh.2022.884324/fullCOVID-19uncertaintysearch engine datastock returnspandemic |
| spellingShingle | Sheng Xu Jing Zhang Rui Shen Uncertainty, Search Engine Data, and Stock Market Returns During a Pandemic Frontiers in Public Health COVID-19 uncertainty search engine data stock returns pandemic |
| title | Uncertainty, Search Engine Data, and Stock Market Returns During a Pandemic |
| title_full | Uncertainty, Search Engine Data, and Stock Market Returns During a Pandemic |
| title_fullStr | Uncertainty, Search Engine Data, and Stock Market Returns During a Pandemic |
| title_full_unstemmed | Uncertainty, Search Engine Data, and Stock Market Returns During a Pandemic |
| title_short | Uncertainty, Search Engine Data, and Stock Market Returns During a Pandemic |
| title_sort | uncertainty search engine data and stock market returns during a pandemic |
| topic | COVID-19 uncertainty search engine data stock returns pandemic |
| url | https://www.frontiersin.org/articles/10.3389/fpubh.2022.884324/full |
| work_keys_str_mv | AT shengxu uncertaintysearchenginedataandstockmarketreturnsduringapandemic AT jingzhang uncertaintysearchenginedataandstockmarketreturnsduringapandemic AT ruishen uncertaintysearchenginedataandstockmarketreturnsduringapandemic |