Death and contagious infectious diseases: Impact of the COVID-19 virus on stock market returns

J Behav Exp Finance. 2020 Sep;27:100326. doi: 10.1016/j.jbef.2020.100326. Epub 2020 Apr 8.


This study investigates whether contagious infectious diseases affect stock market outcomes. As a natural experiment, we use panel data analysis to test the effect of the COVID-19 virus, which is a contagious infectious disease, on the Chinese stock market. The findings indicate that both the daily growth in total confirmed cases and in total cases of death caused by COVID-19 have significant negative effects on stock returns across all companies.

Keywords: COVID-19; Stock returns.