Covid-19 and stock markets’ response in MENA countries

IF 2.5 Q2 BUSINESS, FINANCE

Journal of Islamic Accounting and Business Research Pub Date : 2023-10-20 DOI:10.1108/jiabr-07-2021-0196

Taha Almarayeh

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引用次数: 1

Abstract

Purpose Motivated by the rapid spread of the COVID-19 outbreak in the world, this study aims to explore the stock markets’ response toward it in the Middle East and North Africa (MENA) countries. Design/methodology/approach Ordinary least squares (OLS) regressions were used to analyze the association between the COVID-19 outbreak and stock market returns. The author made use of a panel data set, including 4,195 observations from 13 countries in MENA for the period January 29, 2020, to April 30, 2021. The dependent variable was stock market returns. The explanatory variable, i.e. COVID-19, was proxied by daily growing confirmed infected cases and daily growing confirmed death cases caused by the outbreak. Findings The author finds that stock markets have responded negatively to the growth in COVID-19 deaths. Meanwhile, stock markets show no reaction to the daily growth of confirmed infected COVID-19 cases. Practical implications This study presents worthy information to regulators and policymakers in MENA countries, whose responsibility is to govern regulations at the macro and micro levels based on a comprehensive route that leaves no one behind. This study also offers significant insights to policymakers, managers, investors and society by showing how the stock markets quickly react to outbreaks. Originality/value This study is, to the best of the author’s knowledge, among those exploring the impact of the COVID-19 outbreak on stock market returns in the MENA countries.

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2019冠状病毒病与中东和北非国家股市反应

在新冠肺炎疫情在全球迅速蔓延的背景下，本研究旨在探讨中东和北非(MENA)国家股市对新冠肺炎疫情的反应。设计/方法/方法采用普通最小二乘(OLS)回归分析COVID-19疫情与股市收益之间的关系。作者使用了一个面板数据集，其中包括2020年1月29日至2021年4月30日期间来自中东和北非13个国家的4195次观测结果。因变量是股票市场收益。解释变量COVID-19用疫情导致的每日增长的确诊感染病例和每日增长的确诊死亡病例来表示。作者发现，股市对COVID-19死亡人数的增长做出了负面反应。与此同时，股市对新冠肺炎确诊病例的每日增长没有反应。本研究为中东和北非国家的监管机构和政策制定者提供了有价值的信息，他们的责任是基于不让任何人掉队的综合途径，在宏观和微观层面管理法规。该研究还通过展示股市如何快速应对疫情，为政策制定者、管理者、投资者和社会提供了重要见解。据作者所知，本研究是探索COVID-19疫情对中东和北非国家股市回报影响的研究之一。

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来源期刊

Journal of Islamic Accounting and Business Research BUSINESS, FINANCE-

CiteScore

4.80

自引率

22.70%

发文量

期刊介绍： The journal provides a dynamic forum for the advancement of accounting and business knowledge based on Shari’ah and Islamic activities that have an impact on the welfare of society. JIABR publishes articles on the interplay between Islamic business ethics, accounting, auditing and governance, in promoting accountability, socio-economic justice (adl) and everlasting success (al-falah). It seeks to inform, among others, current theoretical and empirical research and practice in Islamic accounting, auditing and corporate governance, management of Islamic organizations, accounting regulation and policy for Islamic institutions, Shari’ah auditing and corporate governance, financial and non-financial performance measurement and disclosure in Islamic institutions and organizations. All styles of research, theoretical and empirical, case studies, practice-based papers and research notes that are well written and falling within the journal''s scope, are generally welcomed by the journal. Scope/Coverage Development of accounting, auditing and corporate governance concepts based on Shari’ah Socio-political influence on accounting and auditing regulation and policy making for Islamic financial institutions and organizations Historical perspectives on Islamic accounting, auditing and financial management Critical analysis on issues and challenges on accounting disclosure and measurement, Shari’ah audit and corporate governance Controls and risks in Islamic organizations Financial and non-financial performance measurement and disclosure.