Stock market performance and COVID-19 pandemic: evidence from a developing economy

10-1108_jcefts-08-2020-0055.pdf

Dublin Core

Title

Stock market performance and COVID-19 pandemic: evidence from a developing economy

Creator

Michael Insaidoo, Lilian Arthur, Samuel Amoako, Francis Kwaw Andoh

Description

Purpose
The purpose of this study is to assess the extent to which the Ghana stock market performance has been impacted by the novel COVID-19 pandemic.
Design/methodology/approach
The study used the exponential generalized autoregressive conditional heteroscedasticity (EGARCH) model, by using daily time series data from 2 January 2015 to 13 October 2020. Both pre-estimation (Augmented Dickey-Fuller and Phillips-Perron) and post-estimation tests (Jarque-Bera) were conducted to validate the results.
Findings
While the study shows a statistically insignificant negative relationship between the COVID-19 pandemic and the Ghana stock returns, the results confirm that the COVID-19 pandemic has occasioned an increase in the Ghana stock returns volatility by 8.23%. Furthermore, the study confirmed the presence of volatility clustering and asymmetric effect, with the latter implying that worthy news tends …

Publisher

Emerald Publishing Limited

Date

2021

Source

https://scholar.google.com/citations?view_op=view_citation&hl=en&user=8wFumg4AAAAJ&citation_for_view=8wFumg4AAAAJ:u5HHmVD_uO8C

Language

English