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      Global financial crisis and COVID-19: Industrial reactions

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          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.

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          Industry costs of equity

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            COVID-19 and the March 2020 Stock Market Crash. Evidence from S&P1500

            Highlights • March 2020 stock market crash triggered by COVID-19 • Natural gas, food, healthcare, and software stocks earn high positive returns • Petroleum, real estate, entertainment, and hospitality stocks fall dramatically • Loser stocks exhibit extreme asymmetric volatility • Differential reaction of poorest performers to COVID-19
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              COVID-19 lockdowns, stimulus packages, travel bans, and stock returns

              Highlights • We examine the effect of government responses of G7 countries to COVID-19 • We focus on reaction of G7 stock market returns. • We show the importance of lockdowns, travel bans, and economic stimulus. • Lockdowns resulted in cushioning the effects of COVID-19 most.
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                Author and article information

                Journal
                Financ Res Lett
                Financ Res Lett
                Finance Research Letters
                Elsevier Inc.
                1544-6123
                1544-6131
                19 January 2021
                October 2021
                19 January 2021
                : 42
                : 101940
                Affiliations
                [a ]Anderson School of Management, University of New Mexico, Albuquerque, NM 87131, USA
                [b ]Department of Banking and Finance, National Chi Nan University, Nantou County 545, Taiwan
                Author notes
                [* ]Corresponding author.
                [1]

                The authors are grateful to the editor and referee for several helpful suggestions of improvements. Hsuan-Chi Chen gratefully acknowledges support from Anderson School of Management at the University of New Mexico.

                Article
                S1544-6123(21)00021-0 101940
                10.1016/j.frl.2021.101940
                8450756
                35e51b49-19b7-49fa-bc5a-9942e6efe2ee
                © 2021 Elsevier Inc. All rights reserved.

                Since January 2020 Elsevier has created a COVID-19 resource centre with free information in English and Mandarin on the novel coronavirus COVID-19. The COVID-19 resource centre is hosted on Elsevier Connect, the company's public news and information website. Elsevier hereby grants permission to make all its COVID-19-related research that is available on the COVID-19 resource centre - including this research content - immediately available in PubMed Central and other publicly funded repositories, such as the WHO COVID database with rights for unrestricted research re-use and analyses in any form or by any means with acknowledgement of the original source. These permissions are granted for free by Elsevier for as long as the COVID-19 resource centre remains active.

                History
                : 30 September 2020
                : 13 December 2020
                : 16 January 2021
                Categories
                Article

                global financial crisis,covid-19,quantitative easing,stock market

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