Browsing by Author "Ayadi, Borhen Eddine"
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- The impact of the COVID 19 pandemic on the stock market: the case of the Portuguese and Tunisian marketsPublication . Ayadi, Borhen Eddine; Monte, Ana PaulaThe COVID-19 pandemic sent shockwaves through the global financial system, significantly impacting stock markets worldwide. This thesis investigates the specific effects of the pandemic on the performance of the Portuguese and Tunisian stock markets. This study aims to conduct a comparative analysis of the risk and return characteristics of the Portuguese and Tunisian stock markets over a thirteen-year timeframe from 2010 to 2023, specifically focusing on the period before and during the COVID-19 pandemic. The research will involve I) Pre-COVID Period: Analysing the risk-return profiles of both markets for several years preceding the pandemic. This will establish a baseline for comparison: II) During COVID Period: Examining how the risk and return characteristics of both markets changed during the pandemic timeframe. This will involve measuring changes in volatility, average returns, and potential correlations between the two markets. III) Comparative Analysis: Comparing the pre- and during COVID performance. of a sample of 8 companies (4 for each country) was selected and collected financial data for the last four years. Data on Portuguese companies was collected from investing.com Website. To answer the research questions, it used parametric tests like paired simple Test was used to assess the impact of the COVID-19 pandemic on the average monthly returns of the Tunisian Stock Exchange (TUNINDEX) and the Portuguese Stock Exchange (PSI-20) from 2017 to 2022, comparing pre-pandemic (2017-2019) and during-pandemic (2020-2022) returns to identify any significant differences and Levene's test. The results indicate that while the COVID-19 pandemic may have influenced market volatility, it did not lead to a statistically significant change in the average monthly returns of the Portuguese and Tunisian stock market indices. This result underscores the resilience of both markets in the face of the pandemic's economic disruptions, suggesting that while the pandemic introduced heightened uncertainty and fluctuations, it did not fundamentally alter the long-term average returns of these markets. However, the analysis of market risk using Levene's test revealed a significant increase in volatility for the Portuguese market during the pandemic, indicating a heightened level of risk and uncertainty for investors in this market compared to the Tunisian market. This study's findings benefit various groups: Investors can use them to make informed choices about Portuguese and Tunisian markets based on their risk tolerance. Academics can leverage these results to understand how emerging markets respond to global crises. Furthermore, this research opens doors for future investigations into the reasons behind market performance differences and the long-term pandemic impact.