Do Local and World COVID-19 Media Coverage Drive Stock Markets? Time-Frequency Analysis of BRICS
Source of Publication
The role of media coverage as a proxy for investor sentiments has led to the assessments of the impact of COVID-19 media coverage on financial markets. To determine how both local and global media coverage affect financial markets differently, we investigate this issue from the perspective of top emerging markets, BRICS (i.e., Brazil, Russia, India, China, and South Africa). With datasets covering January 2020 to March 2022, we employ the wavelet coherence technique on two major subsamples, viz. initial outbreak year sample and the “new normal” era sample. Our findings demonstrate the leading role of BRICS equities in the initial outbreak period, particularly across medium and low frequencies. In the “new normal” era, we find a significant effect of world media coverage on BRICS equities. We discuss the implications of our findings, which are of importance to investors, policymakers, and practitioners.
Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.
Bossman, Ahmed; Teplova, Tamara; and Umar, Zaghum, "Do Local and World COVID-19 Media Coverage Drive Stock Markets? Time-Frequency Analysis of BRICS" (2022). All Works. 5403.
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Open Access Type
Gold: This publication is openly available in an open access journal/series