The COVID-19 pandemic and feedback trading dynamics: Unveiling global patterns

IF 6.3 2区经济学 Q1 BUSINESS, FINANCE

Research in International Business and Finance Pub Date : 2024-11-12 DOI:10.1016/j.ribaf.2024.102638

Chia-Hsien Tang , Yen-Hsien Lee , Chan-Shin Chen , Ya-Ling Huang

引用次数: 0

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.

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COVID-19 大流行和反馈交易动态：揭示全球模式

本研究利用 Salisu 和 Akanni（2020 年）设计的 COVID-19 全球恐惧指数 (GFI) 分析了 COVID-19 大流行对全球股市的影响。我们研究了 70 个国家的股指反馈交易行为，揭示了大流行情绪与反馈交易之间的复杂关系。我们的研究发现，在许多发达国家，尤其是纬度较高的国家，GFI 主要促使负反馈交易，而流行病情绪与反馈交易之间的关系则十分复杂，且因地区而异。值得注意的是，中国和印度偏离了这些模式，没有表现出显著的反馈交易效应。这些结果凸显了地区差异如何影响金融市场对 COVID-19 危机的反应。这一分析提供了关于大流行病对全球金融市场细微影响的宝贵见解，强调了不同地区的不同反应。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Research in International Business and Finance BUSINESS, FINANCE-

CiteScore

11.20

自引率

9.20%

发文量

240

期刊介绍： Research in International Business and Finance (RIBAF) seeks to consolidate its position as a premier scholarly vehicle of academic finance. The Journal publishes high quality, insightful, well-written papers that explore current and new issues in international finance. Papers that foster dialogue, innovation, and intellectual risk-taking in financial studies; as well as shed light on the interaction between finance and broader societal concerns are particularly appreciated. The Journal welcomes submissions that seek to expand the boundaries of academic finance and otherwise challenge the discipline. Papers studying finance using a variety of methodologies; as well as interdisciplinary studies will be considered for publication. Papers that examine topical issues using extensive international data sets are welcome. Single-country studies can also be considered for publication provided that they develop novel methodological and theoretical approaches or fall within the Journal''s priority themes. It is especially important that single-country studies communicate to the reader why the particular chosen country is especially relevant to the issue being investigated. [...] The scope of topics that are most interesting to RIBAF readers include the following: -Financial markets and institutions -Financial practices and sustainability -The impact of national culture on finance -The impact of formal and informal institutions on finance -Privatizations, public financing, and nonprofit issues in finance -Interdisciplinary financial studies -Finance and international development -International financial crises and regulation -Financialization studies -International financial integration and architecture -Behavioral aspects in finance -Consumer finance -Methodologies and conceptualization issues related to finance