Abstract
This research paper examined the influence of the COVID-19 pandemic on the GCC stock markets indices. By employing the Event Study Methodology (ESM), the findings confirmed that all GCC stock market indices were affected negatively by the COVID-19 pandemic. The GCC stock markets interacted negatively with the early announcement of the first confirmed cases of COVID-19 in Wuhan city in China in December 2019. They were greatly affected when the World Health Organization (WHO) announced that the COVID-19 virus had become a pandemic. The cumulative average abnormal returns (CAAR) for all of the GCC stock market indices revealed that all of the GCC stock markets were negatively affected by the COVID-19 pandemic during all investigated event windows.
Highlights
Countries worldwide have suffered as a result of the COVID-19 virus since the first case was discovered in the Chinese city of Wuhan on December 27, 2019
The GCC stock markets interacted with external events, noting that the substantial declines in all these markets began immediately after the World Health Organization announced that COVID-19 had become a pandemic
This research paper examined the influence of the COVID-19 pandemic on the GCC stock market indices
Summary
Countries worldwide have suffered as a result of the COVID-19 virus since the first case was discovered in the Chinese city of Wuhan on December 27, 2019. Numerous studies have examined the impact of COVID-19 on stock markets in several countries worldwide by applying different methodologies and statistical tools These methodologies include Vector Autoregression (VAR), the Error Correction Model (ECM), simple regression analysis (OLS), GARCH and the Event Study Methodology (ESM). The main objective of this research paper is to examine and analyse the impacts of the COVID-19 pandemic on the GCC stock markets by applying the event study methodology (ESM).
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