{"title":"The COVID-19 pandemic and feedback trading dynamics: Unveiling global patterns","authors":"Chia-Hsien Tang , Yen-Hsien Lee , Chan-Shin Chen , Ya-Ling Huang","doi":"10.1016/j.ribaf.2024.102638","DOIUrl":null,"url":null,"abstract":"<div><div>This study analyzes how the COVID-19 pandemic impacted stock markets worldwide using the COVID-19 Global Fear Index (GFI) devised by Salisu and Akanni (2020). We examine feedback trading behaviors in stock indices across 70 countries, revealing a complex relationship between pandemic-sentiment and feedback trading. Our study finds that GFI primarily motivates negative feedback trading in many developed countries, particularly those in higher latitudes, while the relationship between pandemic-sentiment and feedback trading is complex and varies across regions. Notably, China and India deviate from these patterns, exhibiting no significant feedback trading effects. These results highlight how regional differences shape financial market responses to the COVID-19 crisis. This analysis offers valuable insights into the pandemic's nuanced impact on global financial markets, emphasizing the distinct reactions across diverse geographic regions.</div></div>","PeriodicalId":51430,"journal":{"name":"Research in International Business and Finance","volume":"73 ","pages":"Article 102638"},"PeriodicalIF":6.3000,"publicationDate":"2024-11-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Research in International Business and Finance","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0275531924004318","RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}
引用次数: 0
Abstract
This study analyzes how the COVID-19 pandemic impacted stock markets worldwide using the COVID-19 Global Fear Index (GFI) devised by Salisu and Akanni (2020). We examine feedback trading behaviors in stock indices across 70 countries, revealing a complex relationship between pandemic-sentiment and feedback trading. Our study finds that GFI primarily motivates negative feedback trading in many developed countries, particularly those in higher latitudes, while the relationship between pandemic-sentiment and feedback trading is complex and varies across regions. Notably, China and India deviate from these patterns, exhibiting no significant feedback trading effects. These results highlight how regional differences shape financial market responses to the COVID-19 crisis. This analysis offers valuable insights into the pandemic's nuanced impact on global financial markets, emphasizing the distinct reactions across diverse geographic regions.
期刊介绍：
Research in International Business and Finance (RIBAF) seeks to consolidate its position as a premier scholarly vehicle of academic finance. The Journal publishes high quality, insightful, well-written papers that explore current and new issues in international finance. Papers that foster dialogue, innovation, and intellectual risk-taking in financial studies; as well as shed light on the interaction between finance and broader societal concerns are particularly appreciated. The Journal welcomes submissions that seek to expand the boundaries of academic finance and otherwise challenge the discipline. Papers studying finance using a variety of methodologies; as well as interdisciplinary studies will be considered for publication. Papers that examine topical issues using extensive international data sets are welcome. Single-country studies can also be considered for publication provided that they develop novel methodological and theoretical approaches or fall within the Journal''s priority themes. It is especially important that single-country studies communicate to the reader why the particular chosen country is especially relevant to the issue being investigated. [...] The scope of topics that are most interesting to RIBAF readers include the following: -Financial markets and institutions -Financial practices and sustainability -The impact of national culture on finance -The impact of formal and informal institutions on finance -Privatizations, public financing, and nonprofit issues in finance -Interdisciplinary financial studies -Finance and international development -International financial crises and regulation -Financialization studies -International financial integration and architecture -Behavioral aspects in finance -Consumer finance -Methodologies and conceptualization issues related to finance
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