Rethinking financial contagion: Information transmission mechanism during the COVID-19 pandemic

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dc.contributor.authorLucey, Brian
dc.contributor.authorGoodell, John
dc.contributor.authorBrzeszczyński, Janusz
dc.contributor.authorYarovaya, Larisa
dc.date.accessioned2024-05-30T07:11:59Z
dc.date.available2024-05-30T07:11:59Z
dc.date.issued2022-07
dc.descriptionIn 2020 the global economy faced unprecedented shock caused by the rapid spread of the deadly COVID-19 virus and associated high scale disruption to businesses and to the lives of hundreds of millions of people. The COVID-19 pandemic has been compared with the Great Depression in the 1930s in the US and the financial effects have been likened to the Global Financial Crisis of 2007–2009. The community of finance and economics scholars rapidly responded to the urgent need for research on the impact of pandemics (e.g. Goodell, 2020, Corbet et al., 2020a, Sharif et al., 2020, Szczygielski et al., 2021, Szczygielski et al., 2022).
dc.description.abstractRapidly growing numbers of empirical papers assessing the financial effects of COVID-19 pandemic triggered an urgent need for a study summarising the existing knowledge of contagion phenomenon. This paper provides a review of conceptual approaches to studying financial contagion at four levels of information transmission: (i) Catalyst of contagion; (ii) Media attention; (iii) Spillover effect at financial markets; (iv) Macroeconomic fundamentals. We discuss the unique characteristics of COVID-19 crisis and demonstrate how this shock differs from previous crises and to what extent the COVID-19 pandemic can be considered a ‘black swan’ event. We also review the main concepts, definitions and methodologies that are frequently, but inconsistently, used in contagion literature to unveil the existing problems and ambiguities in this popular area of research. This paper will help researchers to conduct coherent and methodologically rigorous research on the impact of COVID-19 on financial markets during the pandemic and its aftermath. Keywords: Catalyst of contagion, Media attention, COVID-19, information transmissionen
dc.identifier.citationYarovaya, L., Brzeszczyński, J., Goodell, J. W., Lucey, B., & Lau, C. K. M. (2022). Rethinking financial contagion: Information transmission mechanism during the COVID-19 pandemic. Journal of International Financial Markets, Institutions and Money, 79, 101589.
dc.identifier.doihttps://doi.org/10.1016/j.intfin.2022.101589
dc.identifier.urihttps://dspace.adu.ac.ae/handle/1/5523
dc.language.isoen
dc.publisherScience Direct
dc.titleRethinking financial contagion: Information transmission mechanism during the COVID-19 pandemic
dc.typeArticle

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