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This research aims at investigating the response of the stock market to the WHO announcement on 11th of March 2020 which officially declares the spread of the COVID-19 virus as a global pandemic. A total of 77 countries’ major indices have been examined by this research. The results show that (1) the pandemic announcement provides considerable negative shock on the global stock market; (2) country with different income presents a different response to the announcement. In general, the stock market in higher-income country tends to be overreacted at the beginning and bounds back more rapidly than lower-income country.
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Liu et al. (2020) studied this question.
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