cover
cover

COVID-19 and the Stock Market

Stefano Ramelli    University of Zurich, Switzerland    

Alexander F. Wagner    University of Zurich, Switzerland; Swiss Finance Institute; European Corporate Governance Institute; CEPR    

VIEW PDF DOWNLOAD PDF

abstract

When disaster strikes, the weak suffer mightily, the strong only slightly. That is the lesson from stock market reactions to COVID-19. Strong firms had a robust financial position, advanced environmental and social performance, and were not severely exposed to social distancing and lockdowns. Firms with significant international exposure suffered more, at least at first. The ultimate effects of policy interventions, including those by central banks, have yet to be revealed. The market recovery in the second quarter of 2020 is like a patient recovering from COVID-19: hopeful but still uncertain. Managers and policymakers should project the future with great caution.

Pubblicato
31 Luglio 2020
Accettato
30 Giugno 2020
Presentato
03 Giugno 2020
Lingua
EN
ISBN (EBOOK)
978-88-6969-442-4

Keywords: Industry sectorsTail riskStock marketsCOVID-19

Copyright: © 2020 Stefano Ramelli, Alexander F. Wagner. This is an open-access work distributed under the terms of the Creative Commons Attribution License (CC BY). The use, distribution or reproduction is permitted, provided that the original author(s) and the copyright owner(s) are credited and that the original publication is cited, in accordance with accepted academic practice. The license allows for commercial use. No use, distribution or reproduction is permitted which does not comply with these terms.