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What happens to the stock market during the COVID-19 pandemic? A systematic literature review

Puspita Ghaniy Anggraini (Department of Accounting, Universitas Gadjah Mada, Yogyakarta, Indonesia)
Evy Rahman Utami (Department of Accounting, Universitas Gadjah Mada, Yogyakarta, Indonesia and Department of Accounting, Universitas Muhammadiyah Yogyakarta, Yogyakarta, Indonesia)
Eva Wulandari (Department of Accounting, Universitas Gadjah Mada, Yogyakarta, Indonesia and Department of Accounting, Universitas Tidar, Magelang, Indonesia)

Pacific Accounting Review

ISSN: 0114-0582

Article publication date: 8 March 2022

Issue publication date: 18 April 2022

1222

Abstract

Purpose

This study aims to evaluate papers that discuss the stock market during the COVID-19 pandemic to discover lessons that may be beneficial for coping with similar situations in the future.

Design/methodology/approach

This study used the review procedures following Hoque (2014) with modifications, including co-words analysis to map themes. The articles to be reviewed were identified by entering the search keywords “capital market” AND “Covid” and “stock market” AND “Covid” in the Scopus database. After applying a set of criteria, 89 articles were used in the subsequent analysis. The country setting and study findings are recognized, and the lessons learned are further determined.

Findings

As COVID-19 has been designated a global pandemic by the WHO, and its impact is seen in many countries, the setting adopted by many researchers includes two or more countries (i.e., “International”). Six clusters of themes are identified, namely, market responses, spillover/contagion, investor sentiment, investor herding, policy and asset intensity. In this way, the lessons gained cover several stock market elements, including the market, industry, investors, government and companies.

Originality/value

Given the importance of understanding the COVID-19 pandemic and the relevance of the stock market in indicating its severity, to the best of the authors’ knowledge, there has been no literature review research on the stock market during COVID-19. Furthermore, this study also defines what lessons can be drawn.

Keywords

Acknowledgements

Authors would like to thank the Indonesian Ministry of Education and Culture, Research and Technology and the Ministry of Finance for providing doctoral scholarships that have enabled this article to be written.

Citation

Anggraini, P.G., Utami, E.R. and Wulandari, E. (2022), "What happens to the stock market during the COVID-19 pandemic? A systematic literature review", Pacific Accounting Review, Vol. 34 No. 3, pp. 406-425. https://doi.org/10.1108/PAR-11-2021-0184

Publisher

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Emerald Publishing Limited

Copyright © 2020, Emerald Publishing Limited

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