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The Impact of COVID-19 and Structural Market Changes on the Greek Stock Market: An Empirical Analysis

Author

Listed:
  • Christos Christodoulou-Volos

    (Department of Economics and Business, Neapolis University Pafos, Cyprus)

  • Dikaios Tserkezos

    (Department of Economics and Business, Neapolis University Pafos, Cyprus)

Abstract

This study examines the dual impact of COVID-19 and structural market changes on the Greek stock market, specifically the Athens stock exchange (ASE). Quantitative data analysis, granger causality models, and Hsiao’s approach to granger causality were employed to investigate the causalities between COVID-19 pandemic measures and ASE returns. Our findings reveal that pandemic-related variables, including lockdown measures and mobility restrictions, significantly negatively affected the ASE by disrupting economic activities and diminishing investor confidence. Conversely, the study also highlights the positive impact of monetary policy interest rates on the market, which helped stabilize the financial environment by lowering borrowing costs and stimulating investment. These results underscore the intricate dynamics between crisis-induced restrictions and monetary policy adjustments, offering valuable insights for policymakers and investors navigating economic uncertainties.

Suggested Citation

  • Christos Christodoulou-Volos & Dikaios Tserkezos, 2024. "The Impact of COVID-19 and Structural Market Changes on the Greek Stock Market: An Empirical Analysis," International Journal of Economics and Financial Issues, Econjournals, vol. 14(6), pages 320-326, October.
    • Handle: RePEc:eco:journ1:2024-06-35
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    More about this item

    Keywords

    Athens Stock Exchange; COVID-19; Pandemic Impact; Unit-Root Test; Hsiao’s Approach; Granger Causality;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G17 - Financial Economics - - General Financial Markets - - - Financial Forecasting and Simulation

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