Next Article in Journal
Remote Sensing Applications for Monitoring Terrestrial Protected Areas: Progress in the Last Decade
Previous Article in Journal
The First Steps to Develop a Monitoring-Based Method to Support the Sustainable Mosquito Control in an Urban Environment in Hungary
Open AccessArticle

What Drives Stocks during the Corona-Crash? News Attention vs. Rational Expectation

Faculty of Business and Economics, TU Dortmund University, Chair of Finance, Otto-Hahn-Str. 6, 44227 Dortmund, Germany
*
Author to whom correspondence should be addressed.
These authors contributed equally to this work.
Sustainability 2020, 12(12), 5014; https://doi.org/10.3390/su12125014
Received: 28 April 2020 / Revised: 15 June 2020 / Accepted: 17 June 2020 / Published: 19 June 2020
(This article belongs to the Special Issue The Influence of Covid-19 on Sustainable Economy)
We explore if the corona-crash 2020 was driven by news attention or rational expectations about the pandemic’s economic impact. Using a sample of 64 national stock markets covering 94% of the world’s GDP, we find the stock markets’ decline to be mainly associated with higher news attention and less with rational expectation. We estimate the economic cost from the news hype to amount to USD 3.5 trillion for the US and USD 200 billion on average for the rest of the G8 countries. View Full-Text
Keywords: corona-crash; news attention; investor expectation corona-crash; news attention; investor expectation
Show Figures

Figure 1

MDPI and ACS Style

Engelhardt, N.; Krause, M.; Neukirchen, D.; Posch, P. What Drives Stocks during the Corona-Crash? News Attention vs. Rational Expectation. Sustainability 2020, 12, 5014.

Show more citation formats Show less citations formats
Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Article Access Map by Country/Region

1
Search more from Scilit
 
Search
Back to TopTop