An Empirical Analysis of the Immediate and Long-Term Effects of The COVID-19 Pandemic On Global Financial Markets: Sectoral Impacts, Market Volatility, And Policy Responses

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@article{1702033,
      author = {Shivakumara PT},
      title = {An Empirical Analysis of the Immediate and Long-Term Effects of The COVID-19 Pandemic On Global Financial Markets: Sectoral Impacts, Market Volatility, And Policy Responses},
      journal = {Iconic Research And Engineering Journals},
      year = {2020},
      volume = {3},
      number = {9},
      pages = {363-370},
      issn = {2456-8880},
      url = {https://www.irejournals.com/formatedpaper/1702033.pdf},
      abstract = {This study undertakes a comprehensive empirical analysis to investigate the immediate and enduring effects of the COVID-19 pandemic on global financial markets by evaluating the unprecedented levels of volatility, examining sector-specific disruptions particularly in aviation, tourism, and hospitality, and assessing the efficacy of various fiscal and monetary policy interventions implemented across economies, where financial indices such as the S&P 500, FTSE 100, and MSCI World experienced significant declines followed by erratic recoveries in response to public health announcements, mobility restrictions, and vaccine developments, and where industry-specific financial performance revealed disproportionate impacts on capital-intensive and service-oriented sectors as a result of systemic demand shocks and liquidity constraints, with empirical data collected from global financial exchanges, macroeconomic databases, and sectoral performance reports, using econometric models such as event study methodology, GARCH (Generalized Autoregressive Conditional Heteroskedasticity) for volatility analysis, and regression-based impact estimations to delineate the temporal dynamics and causal linkages between pandemic announcements, investor sentiment, and asset price fluctuations, highlighting how markets initially responded with panic-induced sell-offs and liquidity hoarding, followed by phases of tentative stabilization due to coordinated fiscal stimuli, quantitative easing programs, and central bank rate cuts, with further emphasis on comparative case studies across developed and emerging markets to analyze policy heterogeneity, financial resilience, and adaptive investor behavior, ultimately contributing to the academic discourse by providing nuanced insights into financial systemic vulnerabilities during a global health crisis and offering policy recommendations aimed at strengthening future market preparedness and responsiveness to pandemic-induced disruptions, while underscoring the importance of transparent communication, robust fiscal buffers, and technological integration in financial systems as essential elements in mitigating systemic risks and fostering sustainable recovery in post-pandemic global economic frameworks.},
      keywords = {COVID-19 Pandemic, Global Financial Markets, Market Volatility, Sectoral Impacts, Policy Responses, Investor Behavior},
      month = {March},
  }