Document Type
Article
Journal/Book Title/Conference
Entropy
Volume
22
Issue
7
Publisher
M D P I AG
Publication Date
7-20-2020
First Page
1
Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 License.
Last Page
18
Abstract
The discovery and sudden spread of the novel coronavirus (COVID-19) exposed individuals to a great uncertainty about the potential health and economic ramifications of the virus, which triggered a surge in demand for information about COVID-19. To understand financial market implications of individuals’ behavior upon such uncertainty, we explore the relationship between Google search queries related to COVID-19—information search that reflects one’s level of concern or risk perception—and the performance of major financial indices. The empirical analysis based on the Bayesian inference of a structural vector autoregressive model shows that one unit increase in the popularity of COVID-19-related global search queries, after controlling for COVID-19 cases, results in 0.038 – 0.069% of a cumulative decline in global financial indices after one day and 0.054 – 0.150% of a cumulative decline after one week.
Recommended Citation
Ahundjanov, B.B.; Akhundjanov, S.B.; Okhunjanov, B.B. Information Search and Financial Markets under COVID-19. Entropy 2020, 22, 791. https://doi.org/10.3390/e22070791
