Impact of COVID-19 on Investor Behavior and Global Market

Abstract
This research investigates the impact of the COVID-19 pandemic on investor behavior and its repercussions on global financial markets. Utilizing a comprehensive dataset spanning from August 1, 2019, to April 17, 2020, encompassing 45,003,637 transactions executed by 456,365 investors in the United Kingdom, we analyze trading activities, leverage usage, short selling tendencies, and industry-specific dynamics. Our findings screen a large surge in buying and selling activity amidst heightened marketplace volatility, coupled with a brilliant lower in leverage usage across all demographic groups following the outbreak. Moreover, we take a look at an uptick in quick selling sports across various asset training, particularly in industries significantly impacted by way of the pandemic which include Transportation, Accommodation, and Entertainment. Early warning signals of market disruptions were detected preceding major market events, emphasizing the importance of proactive risk management strategies. Our study underscores the necessity for investors to adopt adaptive investment approaches, prioritize risk management, and conduct thorough industry analysis to navigate the evolving landscape of global financial markets during times of crisis.

Keywords
COVID-19, investor behavior, global markets, trading activity, industry dynamics

Cite this paper
Naser Ibrahim Abumustafa, Impact of COVID-19 on Investor Behavior and Global Market , SCIREA Journal of Management. Volume 9, Issue 1, February 2025 | PP. 1-27. 10.54647/management630154

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