ISSN: 2226-3624
Open access
The COVID-19 epidemic has created unprecedented disruptions in global financial markets, resulting in high volatility and large changes in stock returns. Understanding stock market behavior during crises is critical for academic research and practical financial decision-making. This research undertakes a systematic literature review (SLR) of empirical studies that investigate the impact of the COVID-19 pandemic on stock market return and volatility. By analyzing fifteen peer-reviewed articles published between 2019 and 2024, the review highlights how the pandemic triggered unprecedented financial market disruptions, characterized by increased volatility and sharp declines in stock returns across both developed and emerging markets. The findings reveal significant heterogeneity in the effects across countries, sectors, and index types, shaped largely by differing policy responses, pandemic severity, and investor behavior. Future research should aim to bridge these identified gaps. By focusing on Malaysia as a case study and incorporating clearly defined stock indices, precise sample periods, rigorous econometric methods, and thoughtfully chosen control variables, scholars can derive meaningful insights. This insight would not only enhance scholarly discourse, but would also provide useful insights for risk management, demonstrating how developing markets respond to global shocks and providing policymakers and investors with the solutions they need to handle future crises more successfully.
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