Title: Performance of the African stock market amid COVID-19 global health crisis: empirical analysis using four events

Authors: Richard Danquah; Samuel Kortu Nelson; Chiamaka Nneoma Nweze; Peter Davis Sumo; Lydia Osarfo Achaa; Ishmael Arhin

Addresses: Department of Finance, School of Insurance and Economics, University of International Business and Economics, Beijing, 100029, China; Organization of African Academic Doctors (OAAD), Off Kamiti Road, P.O. Box 25305000100, Nairobi, Kenya ' Department of Economics, School of International Trade and Economics, University of International Business and Economics, Beijing, 100029, China; Organization of African Academic Doctors (OAAD), Off Kamiti Road, P.O. Box 25305000100, Nairobi, Kenya ' Department of Educational Leadership and Management, Faculty of Education, Southwest University, Tiansheng Road, Beibei, Chongqing, 400715, China; Organization of African Academic Doctors (OAAD), Off Kamiti Road, P.O. Box 25305000100, Nairobi, Kenya ' School of Textile Science and Engineering, Zhejiang Sci-Tech University, Hangzhou, Zhejiang, 310018, China; Organization of African Academic Doctors (OAAD), Off Kamiti Road, P.O. Box 25305000100, Nairobi, Kenya ' School of Education, Zhengzhou University, 100 Feng Yang Street Office, Zhongyuan District, Henan Province, China; Organization of African Academic Doctors (OAAD), Off Kamiti Road, P.O. Box 25305000100, Nairobi, Kenya ' Department of Business Administration, Dokuz Eylul University, Turkey; Organization of African Academic Doctors (OAAD), Off Kamiti Road, P.O. Box 25305000100, Nairobi, Kenya

Abstract: The study employs the market model and event study approach with four events to examine the performance of the African stock market amid COVID-19 global health crisis. We use daily stock market data from 14 African countries (as a proxy for the African market) spanning September 2019 to June 2021 and COVID-19 data to estimate average abnormal returns for Africa. The results show significant positive average abnormal returns in Africa when the WHO announced COVID-19 as a global health epidemic. The events of infections and deaths generated significant negative average abnormal returns while the event of vaccination did not generate any significant average abnormal returns in the market. In as much as pandemics are unpredictable, the African market quickly recovers as depicted by COVID-19; therefore, we recommend to investors, speculators, and portfolio managers not to quickly exit the continent during pandemics.

Keywords: COVID-19; Africa; stock market; performance; event study; market model; abnormal returns.

DOI: 10.1504/GBER.2023.128852

Global Business and Economics Review, 2023 Vol.28 No.2, pp.134 - 154

Received: 07 Jan 2022
Accepted: 01 Apr 2022
Published online: 07 Feb 2023 *

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