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.
Published Version
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