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

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


School of Economics & Statistics, Guangzhou University (China)

Muhammad Waqas


School of Management, Jiangsu University (China)

Zhengde Xiong


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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Published
2021-01-04

Cited by

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, 16(1), 7–15. 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

Authors

Zhang Shaohua 

School of Economics & Statistics, Guangzhou University China

Authors

Muhammad Waqas 

School of Management, Jiangsu University China

Authors

Zhengde Xiong 

School of Business Administration, Hunan University, Changsha China

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