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<p>This paper investigates whether stock markets respond to disease pandemic referencing the case of COVID-19 in Nigeria. The paper employs three cointegrating regression models: Fully Modified Ordinary Least Squares, Dynamic Ordinary Least Squares, and Canonical Cointegrating Regression to analyse the effect of growth in total COVID-19 confirmed cases and related deaths in Nigeria and across the globe from 27 February 2020 to 4 September 2020 on the stock market performance. Key findings support the presence of long-run association between stock market returns and COVID-19 in Nigeria. The stock market is found to respond negatively to both domestic and global growths in total confirmed cases and deaths of COVID-19. Consequently, affected businesses in Nigeria should be assisted and bailed out by the government through practices such as tax filing, subsidies, targeted spending, and credit.</p>
</abstract>

This paper investigates whether stock markets respond to disease pandemic referencing the case of COVID-19 in Nigeria. The paper employs three cointegrating regression models: Fully Modified Ordinary Least Squares, Dynamic Ordinary Least Squares, and Canonical Cointegrating Regression to analyse the effect of growth in total COVID-19 confirmed cases and related deaths in Nigeria and across the globe from 27 February 2020 to 4 September 2020 on the stock market performance. Key findings support the presence of long-run association between stock market returns and COVID-19 in Nigeria. The stock market is found to respond negatively to both domestic and global growths in total confirmed cases and deaths of COVID-19. Consequently, affected businesses in Nigeria should be assisted and bailed out by the government through practices such as tax filing, subsidies, targeted spending, and credit.

Does Stock Market Respond to Disease Pandemic? A Case of COVID-19 in Nigeria

Acta Universitatis Sapientiae, Economics and Business

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

{"article-title":"Does Stock Market Respond to Disease Pandemic? A Case of COVID-19 in Nigeria"}

This paper investigates whether stock markets respond to disease pandemic referencing the case of COVID-19 in Nigeria. The paper employs three cointegrating...

Does Stock Market Respond to Disease Pandemic? A Case of COVID-19 in Nigeria

Published Online: Sep 27, 2021

Page range: 86 - 101

DOI: https://doi.org/10.2478/auseb-2021-0005

Keywords
COVID-19, pandemic, stock market returns, cointegrating regressions

© 2021 Terver Theophilus Kumeka et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Does Stock Market Respond to Disease Pandemic? A Case of COVID-19 in Nigeria

Published Online: Sep 27, 2021

Page range: 86 - 101

DOI: https://doi.org/10.2478/auseb-2021-0005

KeywordsCOVID-19, pandemic, stock market returns, cointegrating regressions

© 2021 Terver Theophilus Kumeka et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
COVID-19, pandemic, stock market returns, cointegrating regressions