The Impact of the COVID-19 on Economic Sustainability—A Case Study of Fluctuation in Stock Prices for China and South Korea

The coronavirus disease (COVID-19) pandemic has had a global impact on lives, livelihoods, and economies. This study investigates whether a contagious infectious disease can affect the prices of the Chinese and Korean stock markets. Specifically, we aim to discover discrepancies in the impact of COVID-19 on the stock prices of China and South Korea through panel data. To test these discrepancies, we first regressed the stock indices on confirmed cases and deaths. We then validated the stability of coefficients over the past days. The empirical results show that (1) responses of stock indices are stable and impulsive and (2) response patterns toward COVID-19 events considerably vary across nations, especially in the counties such as China and South Korea