Covid-19's adverse effects on a stock market index

Kang Hua CAO, Qiqi LI, Yun LIU, Chi Keung WOO

Research output: Contribution to journalArticlespeer-review

51 Citations (Scopus)


We perform a panel data analysis of 14 daily stock market indices during 01/21/2020 – 06/30/2020 to document a stock market index's negative responsiveness to Covid-19's spread variations. We find that a stock market index's elasticity estimate is −0.028 (p-value <0.01) for local cumulative confirmed cases. As a stock market index tends to move with Covid-19's local and non-local spreads, international efforts of containment are expected to pare stock market losses. Copyright © 2020 Informa UK Limited, trading as Taylor & Francis Group.
Original languageEnglish
Pages (from-to)1157-1161
JournalApplied Economics Letters
Issue number14
Early online dateAug 2020
Publication statusPublished - 2021


Cao, K. H., Li, Q., Liu, Y., & Woo, C.-K. (2021). Covid-19's adverse effects on a stock market index. Applied Economics Letters, 28(14), 1157-1161. doi: 10.1080/13504851.2020.1803481


  • Covid-19
  • Daily stock market index
  • Market index elasticities
  • Panel data analysis


Dive into the research topics of 'Covid-19's adverse effects on a stock market index'. Together they form a unique fingerprint.