Open Access Article Economics

Impact of the COVID-19 virus on MENA stock market

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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Issue
Vol. 27 No. 1 (2024)
Submitted
February 6, 2024
Published
April 4, 2024
Keywords:
    COVID-19, Stock Market Reaction, MENA Region, Infectious Diseases and Finance, Market Efficiency, Economic Impact of Pandemics
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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.

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Authors

Sirine Ben yaala
https://orcid.org/0000-0002-3535-2669
sirine17@live.fr (Primary Contact)
Jamel Eddine Henchiri
https://orcid.org/0000-0001-7675-056X
Author Biographies

Sirine Ben yaala

Dr. Sirine Ben Yaala is currently an Assistant Professor at the Higher Institute of Management, University of Gabes, Tunisia. She received her Ph.D in Finance from the Faculty of Economics and Management at the University of Sfax, Tunisia. Prior to her doctoral studies, she earned a Research Master's degree in Finance and Insurance at the Higher Institute of Management of Gabes, Tunisia (ISGG). Dr. Ben Yaala began her university course by completing her Bachelor's degree in Finance at the Higher Institute of Management of Gabes, Tunisia (ISGG), where she was the first student awarded in both her Bachelor's and Master's promotions. As a member of the Research, Enterprise & Decisions (RED) Laboratory at ISGG, Dr. Ben Yaala is actively engaged in research focusing on financial market, risk and crisis management, behavioral finance, portfolio management, financial market regulation and crisis prediction.

Jamel Eddine Henchiri

Professor Jamel Eddine Henchiri is currently a Professor at the Higher Institute of Management, University of Gabes, Tunisia. He is also the Director of the Research Laboratory “Research, Enterprise & Decisions” (RED) at the University of Gabes, a position he has held since its establishment in 2013. In addition, he has been the President of the scientific journal of Academic Finance (JoAF). Prof. Henchiri is renowned for his contributions to the field of finance and insurance. He is the founder and main organizer of the international conference CSIFA: International Scientific Conference on Finance and Insurance, which he has overseen since 2006. In addition to his academic and organizational roles, Prof. Henchiri has also served as the Director of the Higher Institute of Management, University of Gabes, Tunisia. He obtained his Ph.D. in Management Science from Rennes University in France (IGR-IAE de Rennes: Rennes, Bretagne, FR). Prof. Henchiri's skills and expertise include finance, banking and finance, financial management, portfolio management, corporate governance, risk management, portfolio theory, behavioral finance, financial market regulation, credit risk management, and portfolio selection.

 

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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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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