Impact of Infectious Diseases on Stock Markets: Evidence from Developed Markets

This study investigates the relationship between developed country market indices and the infectious disease stock market volatility index between March 11, 2020, and March 11, 2022. Thus, we seek an answer to the question of how global shocks will affect developed countries. In this context, indices such as S&P 500, CAC 40 and NIKKEI 225 are considered to represent developed country markets. The findings of the study indicate that the infectious disease stock market volatility index variable is significant, according to the GARCH model estimation for the CAC 40 index. In the EGARCH model estimation results for the NIKKEI 225 and S&P 500 indices, the infectious disease stock market volatility index variable is found to be significant. The results of this paper are important for policymaking by governments, investors, and the corporate sector in order to avoid future developments that could lead to financial shocks.

Journal

ZAGREB INTERNATIONAL REVIEW OF ECONOMICS & BUSINESS

Year

2024

Volume

27

Issue

2

Pages

223-236

ISSN

1331-5609

eISSN

1849-1162

DOI

10.2478/zireb-2024-0024

WoS UID

WOS:001372633500011