Market reaction to the COVID-19 pandemic: evidence from emerging markets

What is it about?

Emerging equity markets react more negatively to the COVID-19 than developed markets, especially for for firms with small market capitalizations and for growth stocks. The positive impact of the COVID-19 pandemic occurred in healthcare and telecommunications for the emerging markets and information technology (IT) for the developed markets. The negative market reactions to COVID-19 follow the sharp V-shape recovery compared to the 2007-2008 Global Financial Crisis.

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