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Global financial crisis and COVID-19: Industrial reactions

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  • Chen, Hsuan-Chi
  • Yeh, Chia-Wei
Abstract
We study industrial reactions to both the global financial crisis of 2008 and the COVID-19 pandemic. Although most industries in the U.S. suffered from the two events, the stock performance of most industries started to recover following the announcements of quantitative easing. Our results indicate that quantitative easing is effective in boosting investor confidence. We also find that the effect of quantitative easing in 2020 on stock performance is more significant for the industries that are more affected by the pandemic.

Suggested Citation

  • Chen, Hsuan-Chi & Yeh, Chia-Wei, 2021. "Global financial crisis and COVID-19: Industrial reactions," Finance Research Letters, Elsevier, vol. 42(C).
    • Handle: RePEc:eee:finlet:v:42:y:2021:i:c:s1544612321000210
    DOI: 10.1016/j.frl.2021.101940
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    References listed on IDEAS

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    11. Saeid Homayoun & Mohammad Ali Bagherpour Velashani & Bashaer Khdhair Abbas Alkhafaji & Siham Jabbar Mezher, 2023. "The Effect of COVID-19 on the Performance of SMEs in Emerging Markets in Iran, Iraq and Jordan," Sustainability, MDPI, vol. 15(10), pages 1-14, May.
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    18. Asadi, Mehrad & Pham, Son D. & Nguyen, Thao T.T. & Do, Hung Xuan & Brooks, Robert, 2023. "The nexus between oil and airline stock returns: Does time frequency matter?," Energy Economics, Elsevier, vol. 117(C).
    19. Sami Özcan & Murat Serçemeli & Ali Kemal Çelik, 2024. "Analyzing the Effects of Covid-19 Pandemic on the Financial Performance of Turkish Listed Companies on Borsa Istanbul using the Entropy-based Grey Relational Analysis," International Journal of Economics and Financial Issues, Econjournals, vol. 14(5), pages 109-124, September.

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    More about this item

    Keywords

    Global financial crisis; COVID-19; Quantitative easing; Stock market;
    All these keywords.

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • G00 - Financial Economics - - General - - - General
    • G01 - Financial Economics - - General - - - Financial Crises
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation

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