Government interventions and stock market performance during COVID-19 pandemic: Empirical evidence from Ghana
AbstractThe COVID-19 pandemic that broke out in late 2019 ushered in a rare era of global uncertainty that tested the resilience of financial and economic systems. Countries tried to implement stringent public health regulations to stop the virus’s rapid spread, frequently at the expense of economic...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2024-12-01
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| Series: | Cogent Social Sciences |
| Subjects: | |
| Online Access: | https://www.tandfonline.com/doi/10.1080/23311886.2024.2337014 |
| _version_ | 1797208254729682944 |
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| author | Iddriss Askandir Eric Amoo Bondzie George Tweneboah |
| author_facet | Iddriss Askandir Eric Amoo Bondzie George Tweneboah |
| author_sort | Iddriss Askandir |
| collection | DOAJ |
| description | AbstractThe COVID-19 pandemic that broke out in late 2019 ushered in a rare era of global uncertainty that tested the resilience of financial and economic systems. Countries tried to implement stringent public health regulations to stop the virus’s rapid spread, frequently at the expense of economic activity. We contribute to the existing body of knowledge by providing a detailed analysis of the distinct effects of government initiatives during the COVID-19 pandemic on stock market returns. We examine monthly data from February 2020 to December 2022 using the Autoregressive Distributive Lag model, focusing on both short- and long-run patterns and trends. The findings show that the COVID-19 stringency index has a short-term positive effect on stock market returns and a negative effect in the long-run. Furthermore, the findings show negative correlations between stock market returns and global economic policy uncertainty in the long run and a negative effect in the short-run. The study recommends that investors consider spreading their investments to take advantage of short-term gains during pandemic-related restrictions; listed firms should adapt their business strategies to navigate uncertainties during challenging times and finally, policymakers should enhance communication and transparency in policy decisions to build and maintain investor confidence. |
| first_indexed | 2024-04-24T09:35:53Z |
| format | Article |
| id | doaj.art-e24fb029a3e34328ab3019d10c1c6676 |
| institution | Directory Open Access Journal |
| issn | 2331-1886 |
| language | English |
| last_indexed | 2024-04-24T09:35:53Z |
| publishDate | 2024-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Social Sciences |
| spelling | doaj.art-e24fb029a3e34328ab3019d10c1c66762024-04-15T11:24:31ZengTaylor & Francis GroupCogent Social Sciences2331-18862024-12-0110110.1080/23311886.2024.2337014Government interventions and stock market performance during COVID-19 pandemic: Empirical evidence from GhanaIddriss Askandir0Eric Amoo Bondzie1George Tweneboah2Department of Economic Studies, School of Economics, University of Cape Coast, PMB, Cape Coast, GhanaDepartment of Economic Studies, School of Economics, University of Cape Coast, PMB, Cape Coast, GhanaDepartment of Finance, School of Business, University of Cape Coast, PMB, Cape Coast, GhanaAbstractThe COVID-19 pandemic that broke out in late 2019 ushered in a rare era of global uncertainty that tested the resilience of financial and economic systems. Countries tried to implement stringent public health regulations to stop the virus’s rapid spread, frequently at the expense of economic activity. We contribute to the existing body of knowledge by providing a detailed analysis of the distinct effects of government initiatives during the COVID-19 pandemic on stock market returns. We examine monthly data from February 2020 to December 2022 using the Autoregressive Distributive Lag model, focusing on both short- and long-run patterns and trends. The findings show that the COVID-19 stringency index has a short-term positive effect on stock market returns and a negative effect in the long-run. Furthermore, the findings show negative correlations between stock market returns and global economic policy uncertainty in the long run and a negative effect in the short-run. The study recommends that investors consider spreading their investments to take advantage of short-term gains during pandemic-related restrictions; listed firms should adapt their business strategies to navigate uncertainties during challenging times and finally, policymakers should enhance communication and transparency in policy decisions to build and maintain investor confidence.https://www.tandfonline.com/doi/10.1080/23311886.2024.2337014G11G14I15I18O55ARDL |
| spellingShingle | Iddriss Askandir Eric Amoo Bondzie George Tweneboah Government interventions and stock market performance during COVID-19 pandemic: Empirical evidence from Ghana Cogent Social Sciences G11 G14 I15 I18 O55 ARDL |
| title | Government interventions and stock market performance during COVID-19 pandemic: Empirical evidence from Ghana |
| title_full | Government interventions and stock market performance during COVID-19 pandemic: Empirical evidence from Ghana |
| title_fullStr | Government interventions and stock market performance during COVID-19 pandemic: Empirical evidence from Ghana |
| title_full_unstemmed | Government interventions and stock market performance during COVID-19 pandemic: Empirical evidence from Ghana |
| title_short | Government interventions and stock market performance during COVID-19 pandemic: Empirical evidence from Ghana |
| title_sort | government interventions and stock market performance during covid 19 pandemic empirical evidence from ghana |
| topic | G11 G14 I15 I18 O55 ARDL |
| url | https://www.tandfonline.com/doi/10.1080/23311886.2024.2337014 |
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