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      Trust and stock market volatility during the COVID-19 crisis

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          Abstract

          We investigate if trust affects global stock market volatility during the COVID-19 pandemic. Using a sample of 47 national stock markets, we find the stock markets’ volatility to be significantly lower in high-trust countries (in reaction to COVID-19 case announcements). Both trust in fellow citizens as well as in the countries’ governments are of significant importance.

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          Financial markets under the global pandemic of COVID-19

          Highlights • The COVID-19 pandemic has significant impacts on global financial markets. • Substantial increases of volatility are found in global markets due to the outbreak. • Global stock markets linkages display clear different patterns before and after the pandemic announcement. • Policy responses may create further uncertainties in the global financial markets.
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            Death and contagious infectious diseases: Impact of the COVID-19 virus on stock market returns

            This study investigates whether contagious infectious diseases affect stock market outcomes. As a natural experiment, we use panel data regression analysis to measure the effect of the COVID-19 virus, which is a contagious infectious disease, on the Chinese stock market. The findings indicate that both the daily growth in total confirmed cases and in total cases of death caused by COVID-19 have significant negative effects on stock returns across all companies.
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              Does Social Capital Have an Economic Payoff? A Cross-Country Investigation

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                Author and article information

                Journal
                Financ Res Lett
                Financ Res Lett
                Finance Research Letters
                Elsevier Inc.
                1544-6123
                1544-6131
                1 December 2020
                January 2021
                1 December 2020
                : 38
                : 101873
                Affiliations
                [0001]TU Dortmund University, Faculty of Business and Economics, Chair of Finance, Otto-Hahn-Str. 6, Dortmund 44227, Germany
                Author notes
                [* ]Corresponding author.
                Article
                S1544-6123(20)31687-1 101873
                10.1016/j.frl.2020.101873
                9761196
                36569649
                cb408085-1323-4af3-b29d-d1776b121eed
                © 2020 Elsevier Inc. All rights reserved.

                Since January 2020 Elsevier has created a COVID-19 resource centre with free information in English and Mandarin on the novel coronavirus COVID-19. The COVID-19 resource centre is hosted on Elsevier Connect, the company's public news and information website. Elsevier hereby grants permission to make all its COVID-19-related research that is available on the COVID-19 resource centre - including this research content - immediately available in PubMed Central and other publicly funded repositories, such as the WHO COVID database with rights for unrestricted research re-use and analyses in any form or by any means with acknowledgement of the original source. These permissions are granted for free by Elsevier for as long as the COVID-19 resource centre remains active.

                History
                : 11 August 2020
                : 4 November 2020
                : 27 November 2020
                Categories
                Article

                covid-19,trust,financial markets,volatility
                covid-19, trust, financial markets, volatility

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