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Library's collection Library's IT development CancelPurpose – This study aims to examine further how macroeconomic factors would impact the G-20 stock market indexes (SMI) during the pandemic. Also, how it would moderate the relationship between SMI and macroeconomic variables. This could then be used to assist investing decisions.
Design/methodology/approach – The paper’s sample consists of the G-20 countries. The dependent variable is SMI while the independent variables are interest rates, exchange rates, GDP, and oil prices with COVID-19 as the moderating variable. All variables are derived from Bloomberg Terminal and John Hopkins Database while utilizing the GLS model for the analysis.
Findings – The results revealed that macroeconomic variables significantly affect SMI during the pandemic. Specifically, all of them are positively correlated with SMI except IR which negatively affects SMI. Additionally, the COVID-19 outbreak strengthens the correlation of IR and OP on SMI while it weakens the relationship between GDP and SMI. Meanwhile, it does not moderate the relationship between ER and SMI.
Research limitations/implications – Due to limited relevant past studies, this research takes reference from the 2008 global financial crisis to support the analyses. However, the correlations between the variables alongside the moderating effect have been sufficiently analyzed which implies that understanding the variables’ correlations during the pandemic could assist investing decisions. Future investigations could consider utilizing more macroeconomic factors to broaden the perspective.
Originality/Value – To the author’s best knowledge, no or very few past studies investigated the relationship between macroeconomic variables and SMI during the COVID-19 pandemic in G-20 countries, let alone utilizing the pandemic as a moderator. Additionally, these variables were analyzed separately in prior studies. Hence, this research aims to combine the respective macroeconomic factors and analyze the impact on SMI during the pandemic while also using it as the moderator.