COVID-19, Government Policies and their effects on Latin American Capital Markets

Jose Luis Ruiz Vergara; Angie Guzman Hoyos

doi:10.5354/0719-0816.2022.66970

COVID-19, Políticas gubernamentales y sus efectos en los mercados de capitales de América Latina

Autores/as

Jose Luis Ruiz Vergara Facultad de Economía y Negocios, Universidad de Chile https://orcid.org/0000-0002-1574-8738
Angie Guzman Hoyos Universidad de Chile

Resumen

La pandemia de COVID-19 ha llevado a los gobiernos a implementar políticas que afectan a hogares y empresas. En este estudio, analizamos los impactos de las políticas gubernamentales y las tasas de contagio de COVID en los rendimientos bursátiles de los países que pertenecen al Mercado Integrado de América Latina a través de regresiones OLS robustas. Encontramos evidencia de que la tasa de crecimiento diario de casos confirmados de COVID-19 y las medidas de distanciamiento social influyen negativamente en el desempeño financiero de los índices bursátiles, mientras que se considera que las campañas de concientización pública y las políticas de prueba de seguimiento de contactos han tenido efectos positivos. Estos hallazgos son útiles para evaluar los impactos de las políticas gubernamentales y el desempeño de la cartera.

Palabras clave:

COVID-19, Mercados de Capitales Emergentes, Políticas gubernamentales, MILA, Distancia social

Referencias

Akhtaruzzaman, M., Boubaker, S. & Sensoy, A. (2021). Financial contagion during covid–19 crisis. Finance Research Letters, 38, 101604. https://doi.org/10.1016/j.frl.2020.101604

Al-Awadhi, A. M., Alsaifi, K., Al-Awadhi, A. & Alhammadi, S. (2020). Death and contagious infectious diseases: Impact of the covid-19 virus on stock market returns. Journal of Behavioral and Experimental Finance, 27, 100326. https://doi.org/10.1016/j.jbef.2020.100326

Ashraf, B. N. (2020). Economic impact of government interventions during the covid-19 pandemic: International evidence from financial markets. Journal of Behavioral and Experimental Finance, 27, 100371. https://doi.org/10.1016/j.jbef.2020.100371

Baker, S. R., Bloom, N., Davis, S. J., Kost, K., Sammon, M. & Viratyosin, T. (2020). The unprecedented stock market reaction to covid-19. The Review of Asset Pricing Studies, 10(4), 742–758. https://doi.org/10.1093/rapstu/raaa008

Bouri, E., Cepni, O., Gabauer, D. & Gupta, R. (2021). Return connectedness across asset classes around the covid-19 outbreak. International Review of Financial Analysis 73, 101646. https://doi.org/10.1016/j.irfa.2020.101646

Celık, S. (2012). The more contagion effect on emerging markets: The evidence of DCC-GARCH model. Economic Modelling, 29(5), 1946-1959. https://doi.org/10.1016/j.econmod.2012.06.011

Corbet, S., Hou, Y. G., Hu, Y., Oxley, L., & Xu, D. (2021). Pandemic-related financial market volatility spillovers: Evidence from the Chinese COVID-19 epicentre. International Review of Economics & Finance, 71, 55-81. https://doi.org/10.1016/j.iref.2020.06.022

Donthu, N., & Gustafsson, A. (2020). Effects of COVID-19 on business and research. Journal of business research, 117, 284-289. https://doi.org/10.1016/j.jbusres.2020.06.008

Espinosa-Méndez, C., & Arias, J. (2021). COVID-19 effect on herding behaviour in European capital markets. Finance research letters, 38, 101787. https://doi.org/10.1016/j.frl.2020.101787

Frezza, M., Bianchi, S., & Pianese, A. (2021). Fractal analysis of market (in) efficiency during the COVID-19. Finance Research Letters, 38, 101851. https://doi.org/10.1016/j.frl.2020.101851

Ftiti, Z., Ameur, H. B., & Louhichi, W. (2021). Does non-fundamental news related to COVID-19 matter for stock returns? Evidence from Shanghai stock market. Economic Modelling, 99, 105484. https://doi.org/10.1016/j.econmod.2021.03.003

Harjoto, M. A., Rossi, F., Lee, R., & Sergi, B. S. (2021). How do equity markets react to COVID-19? Evidence from emerging and developed countries. Journal of Economics and Business, 115, 105966. https://doi.org/10.1016/j.jeconbus.2020.105966

Junior, C. J. C., Garcia-Cintado, A. C., & Junior, K. M. (2021). Macroeconomic policies and the pandemic-driven recession. International Review of Economics & Finance, 72, 438-465. https://doi.org/10.1016/j.iref.2020.12.010

Liu, Z., Huynh, T. L. D., & Dai, P. F. (2021). The impact of COVID-19 on the stock market crash risk in China. Research in international Business and Finance, 57, 101419. https://doi.org/10.1016/j.ribaf.2021.101419

Okorie, D. I., & Lin, B. (2021). Adaptive market hypothesis: the story of the stock markets and COVID-19 pandemic. The North American Journal of Economics and Finance, 57, 101397. https://doi.org/10.1016/j.najef.2021.101397

Salisu, A. A., & Vo, X. V. (2020). Predicting stock returns in the presence of COVID-19 pandemic: The role of health news. International Review of Financial Analysis, 71, 101546. https://doi.org/10.1016/j.irfa.2020.101546

Sebastiani, G., Massa, M., & Riboli, E. (2020). Covid-19 epidemic in Italy: evolution, projections and impact of government measures. European journal of epidemiology, 35(4), 341-345. https://doi.org/10.1007/s10654-020-00631-6

Seven, Ü., & Yılmaz, F. (2021). World equity markets and COVID-19: Immediate response and recovery prospects. Research in International Business and Finance, 56, 101349. https://doi.org/10.1016/j.ribaf.2020.101349

Topcu, M., & Gulal, O. S. (2020). The impact of COVID-19 on emerging stock markets. Finance Research Letters, 36, 101691. https://doi.org/10.1016/j.frl.2020.101691

Wagner, A. F. (2020). What the stock market tells us about the post-COVID-19 world. Nature Human Behaviour, 4(5), 440-440. https://doi.org/10.1038/s41562-020-0869-y

Yepes-Rios, B., Gonzalez-Tapia, K., & Gonzalez-Perez, M. A. (2015). The integration of stock exchanges: The case of the Latin American Integrated Market (MILA) and its impact on ownership and internationalization status in Colombian brokerage firms. Journal of Economics, Finance and Administrative Science, 20(39), 84-93. https://doi.org/10.1016/j.jefas.2015.08.001

Zaremba, A., Aharon, D. Y., Demir, E., Kizys, R., & Zawadka, D. (2021). COVID-19, government policy responses, and stock market liquidity around the world: A note. Research in International Business and Finance, 56, 101359. https://doi.org/10.1016/j.ribaf.2020.101359

Zhang, D., Hu, M., & Ji, Q. (2020). Financial markets under the global pandemic of COVID-19. Finance research letters, 36, 101528. https://doi.org/10.1016/j.frl.2020.101528