Abstract
This research paper empirically analyzes the SARS-CoV-2 (Severe Acute Respiratory Syndrome Coronavirus-2) Pandemic’s Impact on the Stock Market of Bangladesh over the period from March 08, 2020 to June 30, 2020. The study employed the Vector Error Correction Model (VECM), the Wald test, and the Pairwise Granger Causality Test by using thirty-six daily data of Sample tests of Covid-19, Covid-19 confirmed cases, death, recovered covid-19 patients, infection rate, fatality rate, recovery rate of covid-19, and return on stock market index in Bangladesh. The results of the model point on the existence of the association between variables on both long and short runs. Again, this causality runs from the studied independent variables to the return on the stock market index in Bangladesh. Overall, the findings of this paper suggest that returns on the stock market index in Bangladesh react to COVID-19 widespread and this reaction changes over time depending on the arrangement of the flare-up.
Published Version (
Free)
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call