Government policy responses and stock liquidity: covid-19 pandemic

Yee-Ee Chia and Mohd Ashari Bakri and Eva Nur (2025) Government policy responses and stock liquidity: covid-19 pandemic. International Journal of Academic Research in Accounting, Finance and Management Sciences, 15 (1). pp. 1-9. ISSN 2225-8329

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Abstract

The COVID-19 pandemic has caused huge disruptions in global economies, and a government is needed to implement different degrees of stringency measures to prevent the virus’s spread. This study examines the impact of government policy responses on stock liquidity in Malaysia during the COVID-19 pandemic. The sample period covered from January 2, 2020 to June 30, 2022, comprising 890 publicly traded stocks, disaggregated into 539 large and 351 small capital stocks. The pooled ordinary least squares results show that the government policy announcement has significantly improved liquidity in Malaysia’s financial market. Hence, our findings demonstrate that restrictions and policies taken by the government are important for policymakers and financial institutions to mitigate liquidity challenges amidst heightened uncertainty and market volatility during the coronavirus outbreak.

Item Type:	Article
Keyword:	Government Stringency Index Policy, Liquidity, COVID-19, Stock Market, Malaysia
Subjects:	H Social Sciences > HG Finance > HG1-9999 Finance > HG4501-6051 Investment, capital formation, speculation > HG4900-5993 By region or country R Medicine > RA Public aspects of medicine > RA1-1270 Public aspects of medicine > RA421-790.95 Public health. Hygiene. Preventive medicine > RA643-645 Disease (Communicable and noninfectious) and public health
Department:	FACULTY > Labuan Faculty of International Finance
Depositing User:	ABDULLAH BIN SABUDIN -
Date Deposited:	11 Jun 2025 11:56
Last Modified:	11 Jun 2025 11:56
URI:	https://eprints.ums.edu.my/id/eprint/44044

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