Table 5.

Stock Market Reactions to Policy Responses – Random and Fixed Effect Models.

	Model (1) – Random Effects	Model (2) - Fixed Effects
DV:	Stock Index Return based on Price Index	Stock Index Return based on Price Index
Lockdown	−1.232***
	(0.352)
Post Lockdown Period	0.504	0.412
	(0.337)	(0.344)
DID_Lockdown	1.342***	1.368***
	(0.375)	(0.378)
Interest Rate Cut	−1.926***
	(0.461)
Post Interest Cut Period	−2.609***	−2.650***
	(0.453)	(0.455)
DID_Interest Rate Cut	1.965***	2.023***
	(0.462)	(0.466)
Rt-1	−0.213***	−0.215***
	(0.026)	(0.026)
Case Increase Rate	−0.004	−0.005
	(0.003)	(0.003)
Stringency	0.013***	0.015***
	(0.005)	(0.005)
GDP	−0.000
	(0.000)
HDI	0.474
	(1.479)
Constant	1.000	−0.522***
	(1.363)	(0.201)
Obs	1451	1451
Adj. R-sq	0.081	0.077
Random Effects	Yes
Fixed Effects		Yes

Notes: This table reports the Difference-in-Differences estimation for Eq. (1): $R_{i,t}={\alpha }_i+{\beta }_1\text{*}{PolicyChange}_{i,t}+{\beta }_2\text{*}{PostEventPeriod}_{i,t}+{\beta }_3\text{*}{DID}_{i,t}+{\beta }_4\text{*}{R}_{i,t-1}+{\beta }_5\text{*}{CaseIncreaseRate}_{i,t}+{{\beta }_6\text{*}Stringency}_{i,t}+{\beta }_{1:n}{\text{*}{CC}_i+\epsilon }_{i,t}$ by using random effect model (Column 1) and fixed effect model (Column 2) specifications. Standard errors in parentheses for differences. *, **, *** denote statistical significance at the 0.1, 0.05, and the 0.01 levels, respectively.