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Emerging equity market reaction to pandemic prevention policy: Evidence from regression discontinuity design

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  • Bora Aktan

    (University of Bahrain, College of Business Administration, Kingdom of Bahrain)

Abstract

The purpose of this study is both to release the effects of the current pandemic on emerging equity markets and to examine the efficacy of the prevention policy to lessen the plausible negative effects. In this context, Turkey, as an emerging market, is examined by adopting the Regression Discontinuity Design which is a robust non-experimental approach for evaluating the causal effects of interventions. The results of the research reveal that the COVID-19 pandemic is effective in Bourse Istanbul after a certain period when it first appeared in the world. And therewithal, the efficiency of preventing policy taken in the country statistically decreased the negative impact of the pandemic.

Suggested Citation

  • Bora Aktan, 2022. "Emerging equity market reaction to pandemic prevention policy: Evidence from regression discontinuity design," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 40(2), pages 421-439.
    • Handle: RePEc:rfe:zbefri:v:40:y:2022:i:2:p:421-439
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    References listed on IDEAS

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    More about this item

    Keywords

    COVID-19; pandemic; emerging equity markets; Turkey; regression discontinuity;
    All these keywords.

    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation

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