COVID-Induced Investor Sentiments and Market Reaction under Extreme Meteorological Conditions: Evidence from Clean Energy Sector of Asia-Pacific

Farzan Yahya; Zhang Shaohua; Muhammad Waqas; Zhengde Xiong

doi:10.35784/pe.2021.1.01

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Published: Jan 4, 2021

DOI: https://doi.org/10.35784/pe.2021.1.01

Issue Vol. 16 No. 1 (2021)

Articles

COVID-Induced Investor Sentiments and Market Reaction under Extreme Meteorological Conditions: Evidence from Clean Energy Sector of Asia-Pacific
Farzan Yahya, Zhang Shaohua, Muhammad Waqas, Zhengde Xiong

7-15
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Reflection on the Human Living Environment in Connection with Sustainable Development
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51-60
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61-66
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123-131
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133-142
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143-156
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157-164
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165-170
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181-185
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187-191
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193-200
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201-207
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219-229

DOI

https://doi.org/10.35784/pe.2021.1.01

Authors

Farzan Yahya

farzan.yahya@yahoo.com

Department of Business Administration, Institute of Southern Punjab, 9-KM, Bosan Road, Khayab-e-Yusuf, Multan, Pakistan

https://orcid.org/0000-0001-5666-1279

Zhang Shaohua

ahua168@126.com

School of Economics & Statistics, Guangzhou University, China

Muhammad Waqas

mwaqas@mail.ustc.edu.cn

School of Management, Jiangsu University, China

Zhengde Xiong

hnxzd@126.com

School of Business Administration, Hunan University, Changsha, China

Abstract

The unprecedented global economic and social crisis caused by the coronavirus outbreak has not spared the energy sector. Using a dynamic model, we investigated the effect of COVID-19 cases on investor sentiments and stock returns of clean energy in the Asian-Pacific region. The results show that coronavirus cases negatively affect stock returns using investor sentiments as a transmission channel. We also find a negative effect of air pollution on stock returns. Since COVID-19 restricted trade and plummeted the oil prices, economies relied on non-renewable sources to meet energy demands. Nevertheless, the investor’s optimism and high sentiment level may deteriorate this link. On the other hand, we do not find any significant effect of low-high temperature on either investor sentiments or clean energy stock returns. Clean energy stocks were viewed as more sustainable and less vulnerable to external shocks, however, the fear and pessimism among investors induced by corona-virus are spilled over the renewable energy sector.

Keywords:

COVID-19, investor sentiments, air pollution, temperature, clean energy stocks

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Yahya, F., Shaohua, Z., Waqas, M., & Xiong, Z. (2021). COVID-Induced Investor Sentiments and Market Reaction under Extreme Meteorological Conditions: Evidence from Clean Energy Sector of Asia-Pacific. Problemy Ekorozwoju Problems of Sustainable Development, 16(1), 7–15. https://doi.org/10.35784/pe.2021.1.01

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COVID-Induced Investor Sentiments and Market Reaction under Extreme Meteorological Conditions: Evidence from Clean Energy Sector of Asia-Pacific

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