Early Warning Signals From Global Financial Markets at the Beginning of Covid -19 Pandemic

Bibliographic Data

ID21680778
AuthorsSamiye EKİM DERTLİ (0000-0003-4904-4373, İskenderun Technical University), Hakan ERYÜZLÜ (0000-0003-3715-0021, İskenderun Technical University)
Year2020
Volume15 Issue 8
Issue15 Issue 8
Pages3507-3520
Publication date2020-01-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueJournal of Turkish Studies (JOURNAL)
Journal identifiersISSN: 1308-2140 • E-ISSN: 1308-2140
Publisherİntaç Eğitim Danışmanlık Organizasyon Araştırma İnşaat Sanayi ve Ticaret Limited Şirketi (PUBLISHER)
DOI10.7827/turkishstudies.45694
OpenAlexW3115963833
LanguageEN
References cited10

The Covid-19 Pandemic pose health security risks all over the world and makes its effects felt in every field. The objective of this paper is to observe the response of the financial markets of countries with the highest global health security index (GHSI) when the pandemic cases started and to guide investors. The main areas of the index are prevention, detection, reporting, rapid response, health system, compliance with international norms and risk environment. Many indicators are monitored under these basic areas. The motivation point of the study is that comparing the financial markets of countries with the highest global health security index has never been investigated. The top 5 countries selected are as follows: The United States, The United Kingdom, The Netherlands, Australia and Canada. In the selection of the stock exchange, the most known indexes of the countries on a global scale and the highest trading volume are taken. The common transaction days are taken as a basis short period that starts on 28 February 2020 and ends on 15 May 2020. This study showing early warning signals from global financial markets will also be a guide for future studies and long-term analysis. Dumitrescu Hurlin Panel Causality Test applied to the data; the causality from death and case rates to stock market returns is investigated. Hidden causality is important in decision making. Investors should make international investments by thinking in detail about the assets in their portfolio. In the near future, the importance of hidden causality relations research and early warning signals that occur with the effect of financial contagion will increase

Business · Economic growth · Economics · Emerging markets · Financial economics · Financial market · Geography · Global health · Health care · Pandemic · Portfolio · Stock market · Stock market index · Warning system · COVID-19 Pandemic Impacts · Financial Risk and Volatility Modeling · Market Dynamics and Volatility · Medicine · Finance