Open Access Article Economics

Impact of the COVID-19 virus on MENA stock market

Authors

Sirine Ben yaala(1), Jamel Eddine Henchiri(2)

  1. RED Laboratory, Higher Institute of Management, University of Gabes
  2. RED Laboratory, Higher Institute of Management, University of Gabes

https://doi.org/10.36923/economa.v27i1.238

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Abstract

This study examines the influence of contagious infectious diseases, specifically COVID-19, on stock market behavior. With the global emergence of COVID-19, we have witnessed not only the health implications of a pandemic but also its profound social and economic repercussions, exacerbated by the implementation of lockdown measures. Utilizing panel data analysis, we assess the impact of disseminated information regarding the virus on the stock markets of the MENA region. Our findings reveal that the daily increases in both total confirmed cases and total deaths attributable to COVID-19 have a consistently significant and negative effect on stock returns across all observed markets. In conclusion, our analysis confirms that the spread of COVID-19 has had a detrimental impact on stock market returns in the MENA region. This underscores the vulnerability of financial markets to global health crises and highlights the necessity for market participants to consider health-related information as a significant factor in risk assessment and investment decision-making processes.

Article information

Keywords
COVID-19Stock Market ReactionMENA RegionInfectious Diseases and FinanceMarket EfficiencyEconomic Impact of Pandemics
Section
Articles
Issue
Vol. 27 No. 1 (2024)
Submitted
February 6, 2024
Published
April 4, 2024
Corresponding author
Sirine Ben yaala
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How to Cite

Ben yaala, S., & Henchiri, J. E. (2024). Impact of the COVID-19 virus on MENA stock market. Innovation Economics Frontiers, 27(1), 17-26. https://doi.org/10.36923/economa.v27i1.238

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