Reaction of African stocks markets to disequilibrium episodes of the COVID-19 infection: Evidence from the top hit African countries
The continued COVID-19 pandemic has had a significant impact on the global economy, with countries battling to contain the infection’s spread as it continues to affect nearly every country in the globe. We test for possible explosive behavior (excessive disequilibrium) in COVID-19 infection in the t...
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| Format: | Article |
| Language: | English |
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Peoples’ Friendship University of Russia (RUDN University)
2022-12-01
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| Series: | RUDN Journal of Economics |
| Subjects: | |
| Online Access: | https://journals.rudn.ru/economics/article/viewFile/32147/21191 |
| _version_ | 1811198932760395776 |
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| author | Suleiman O. Mamman Jamilu Iliyasu Aliyu Rafindadi Sanusi |
| author_facet | Suleiman O. Mamman Jamilu Iliyasu Aliyu Rafindadi Sanusi |
| author_sort | Suleiman O. Mamman |
| collection | DOAJ |
| description | The continued COVID-19 pandemic has had a significant impact on the global economy, with countries battling to contain the infection’s spread as it continues to affect nearly every country in the globe. We test for possible explosive behavior (excessive disequilibrium) in COVID-19 infection in the top African impacted economies, given the sensitivity and fragility of stock markets to shocks. The study identifies two (2) separate explosive occurrences in Algeria and Egypt using the Generalized Sup Augmented DickeyFuller (GSADF) test. Furthermore, the study examines the influence of the COVID-19 infection’s explosive behavior on the stock markets of the countries, taking into consideration the disequilibrium occurrences. The COVID-19 infection’s explosive behavior had a negative but insignificant effect on stock returns, leading to an increase in riskiness. This outcome could be explained by the fact that the explosive incidents were transitory and could only have had a momentary impact on stock market returns absorbable overtime. More so, it suggests that investors may have adjusted to the shock of the COVID-19 infection prior to the two explosive occurrences, and that the development of the COVID-19 vaccine reassures for a near halt to the pandemic. |
| first_indexed | 2024-04-12T01:39:33Z |
| format | Article |
| id | doaj.art-66531037e1d84c8481fb1fbee5d0e6eb |
| institution | Directory Open Access Journal |
| issn | 2313-2329 2408-8986 |
| language | English |
| last_indexed | 2024-04-12T01:39:33Z |
| publishDate | 2022-12-01 |
| publisher | Peoples’ Friendship University of Russia (RUDN University) |
| record_format | Article |
| series | RUDN Journal of Economics |
| spelling | doaj.art-66531037e1d84c8481fb1fbee5d0e6eb2022-12-22T03:53:13ZengPeoples’ Friendship University of Russia (RUDN University)RUDN Journal of Economics2313-23292408-89862022-12-0130332934210.22363/2313-2329-2022-30-3-329-34220966Reaction of African stocks markets to disequilibrium episodes of the COVID-19 infection: Evidence from the top hit African countriesSuleiman O. Mamman0https://orcid.org/0000-0003-3204-0595Jamilu Iliyasu1Aliyu Rafindadi Sanusi2Graduate School of Economics and Management, Ural Federal UniversityABU, Business School, Ahmadu Bello UniversityABU, Business School, Ahmadu Bello UniversityThe continued COVID-19 pandemic has had a significant impact on the global economy, with countries battling to contain the infection’s spread as it continues to affect nearly every country in the globe. We test for possible explosive behavior (excessive disequilibrium) in COVID-19 infection in the top African impacted economies, given the sensitivity and fragility of stock markets to shocks. The study identifies two (2) separate explosive occurrences in Algeria and Egypt using the Generalized Sup Augmented DickeyFuller (GSADF) test. Furthermore, the study examines the influence of the COVID-19 infection’s explosive behavior on the stock markets of the countries, taking into consideration the disequilibrium occurrences. The COVID-19 infection’s explosive behavior had a negative but insignificant effect on stock returns, leading to an increase in riskiness. This outcome could be explained by the fact that the explosive incidents were transitory and could only have had a momentary impact on stock market returns absorbable overtime. More so, it suggests that investors may have adjusted to the shock of the COVID-19 infection prior to the two explosive occurrences, and that the development of the COVID-19 vaccine reassures for a near halt to the pandemic.https://journals.rudn.ru/economics/article/viewFile/32147/21191covid-19stock marketexplosive episodesgsadfafricacovid-19gsadf |
| spellingShingle | Suleiman O. Mamman Jamilu Iliyasu Aliyu Rafindadi Sanusi Reaction of African stocks markets to disequilibrium episodes of the COVID-19 infection: Evidence from the top hit African countries RUDN Journal of Economics covid-19 stock market explosive episodes gsadf africa covid-19 gsadf |
| title | Reaction of African stocks markets to disequilibrium episodes of the COVID-19 infection: Evidence from the top hit African countries |
| title_full | Reaction of African stocks markets to disequilibrium episodes of the COVID-19 infection: Evidence from the top hit African countries |
| title_fullStr | Reaction of African stocks markets to disequilibrium episodes of the COVID-19 infection: Evidence from the top hit African countries |
| title_full_unstemmed | Reaction of African stocks markets to disequilibrium episodes of the COVID-19 infection: Evidence from the top hit African countries |
| title_short | Reaction of African stocks markets to disequilibrium episodes of the COVID-19 infection: Evidence from the top hit African countries |
| title_sort | reaction of african stocks markets to disequilibrium episodes of the covid 19 infection evidence from the top hit african countries |
| topic | covid-19 stock market explosive episodes gsadf africa covid-19 gsadf |
| url | https://journals.rudn.ru/economics/article/viewFile/32147/21191 |
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