Purpose

This study investigates the effects of the COVID-19 outbreak on daily stock returns for the six major affected WHO Regions, namely: Africa, Americas, Eastern Mediterranean, Europe, South-East Asia and Western Pacific.

Design/methodology/approach

This study uses an event study method and panel-data regression models to examine the effect of the daily increase in the number of COVID-19 confirmed cases on daily stock returns from 1 March to 1 August 2020 for the leading stock market in major affected countries in the WHO regions.

Findings

The results reveal an adverse impact of the daily increasing number of COVID-19 cases on stock returns and stock markets fell quickly in response to the pandemic. The findings also suggest that negative market reaction was strong during the early stage of the outbreak between the 26th and 35th days after the initial confirmed cases. We further find that stock markets in the Western Pacific region experienced more negative abnormal returns as compared to other regions. The results also confirm that feelings of fear among investors turned out to be a mediator and a transmission channel for the effect of COVID-19 outbreak on the stock markets.

Research limitations/implications

This study contributes to financial literature in two ways. First, we contribute to existing literature that has examined the effect of various catastrophes and crises on the stock markets Second, we contribute to the recent emerging literature that examines the impact of COVID-19 on financial markets.

Practical implications

The study may have implications for policymakers to deal with this outbreak without triggering uncertainty in stock markets and reassure investors' confidence. The study may also be of interest to investors, managers, financial analysts by revealing how the stock markets quickly respond to outbreaks.

Originality/value

This study is the first study to examine the impact of the COVID-19 outbreak on the leading stock markets of the WHO regions.

中文翻译：

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股市对 COVID-19 的反应：来自世卫组织六个区域的证据

目的

本研究调查了 COVID-19 疫情对世卫组织六个主要受影响区域（即非洲、美洲、东地中海、欧洲、东南亚和西太平洋）每日股票收益的影响。

设计/方法/方法

本研究使用事件研究方法和面板数据回归模型来检验 COVID-19 确诊病例的每日增加对主要受影响国家主要股票市场 2020 年 3 月 1 日至 8 月 1 日每日股票收益的影响在世卫组织区域。

发现

结果显示，每天增加的 COVID-19 病例数量对股票收益产生不利影响，股票市场因大流行而迅速下跌。调查结果还表明，在最初确诊病例后的第 26 天至第 35 天之间，在疫情爆发的早期阶段，负面市场反应强烈。我们进一步发现，与其他地区相比，西太平洋地区的股票市场经历了更多的负异常收益。结果还证实，投资者的恐惧感原来是 COVID-19 爆发对股市影响的中介和传播渠道。

研究限制/影响

本研究以两种方式对金融文献作出贡献。首先，我们为研究各种灾难和危机对股票市场影响的现有文献做出贡献。其次，我们为最近出现的研究 COVID-19 对金融市场影响的文献做出贡献。

实际影响

该研究可能对政策制定者在不引发股市不确定性和安抚投资者信心的情况下应对此次疫情产生影响。通过揭示股市如何快速应对疫情爆发，该研究也可能引起投资者、经理和金融分析师的兴趣。

原创性/价值

这项研究是第一项研究 COVID-19 爆发对世卫组织区域主要股票市场的影响的研究。