I examine how financial markets interact with news about the COVID-19 pandemic. A twelve topic model optimizes the trade-off between number of topics and topic coherence. Using this model, I show that before mid-March 2020 markets react more to the same quantum of news when volatility is higher...

A number of European countries - Austria, Belgium, France, Greece, Italy, and Spain - responded to the market disruption caused by the COVID-19 pandemic by introducing temporary bans on short-selling activity. These restrictions were imposed on all stocks and remained in place between March 18...

While the stock market crashed in the first quarter after the outbreak of COVID-19, this paper finds that bio-tech firms and their investors could take advantage of the COVID-19 investment opportunity and earn positive abnormal returns. Bio-tech firms earn abnormal returns of 1.63% per...

How did the COVID-19 pandemic affect firm-supplier-customer relationships? We find that, by the end of 2020q1, U.S. firms lost as many as 10.3% of their Chinese suppliers, suffering market value losses of up to $1.4 trillion. Affected U.S. firms were unable to relocate their supply chains,...

The COVID-19 pandemic is impacting global markets through unprecedented circumstances. Fears surrounding such novel virus has led to dramatic market turbulence and massive tumbles in stock prices. In this paper, we explore the impact of COVID-19 on a comprehensive sample of 45 emerging...

The spread of COVID-19 in the New York City area forced the New York Stock Exchange (NYSE) to temporarily shut down its iconic trading floor. Using a recently developed machine learning approach, I study the effects of this COVID-19 closure on market quality during the market closing time, 3:50...

Through globalization and financial market liberalization, the opening up of markets has increased cross-border investments as investors search for higher risk-adjusted returns. This ability to invest internationally has raised the attention given to emerging markets that offer higher...

We model the learning process of market traders during the unprecedented COVID-19 event. We introduce a behavioral heterogeneous agents' model with bounded rationality by including a correction mechanism through representativeness (Gennaioli et al., 2015). To inspect the market crash induced by...

This paper aims to examine the volatility spillover, diversification benefits, and hedge ratios between U.S. stock markets and different financial variables and commodities during the pre-COVID-19 and COVID-19 crisis, using daily data and multivariate GARCH models. Our results indicate that the...