Bank Stock Return Reactions to the COVID-19 Pandemic: The Role of Investor Sentiment in MENA Countries

In this study, we investigated the impact of COVID-19 investor sentiment (CS), number cases (CC), and deaths (CD) on bank stock returns in 16 MENA countries. addition, examined interaction effects CS with CC CD returns. Lastly, looked at whether Islamic banks outperformed conventional during pandemic. Based monthly data from Middle East North Africa (MENA) countries February 2020 to July 2021, used clustered standard error fixed effect estimation market The results suggest that have negative impacts while has no effect, except for lagged value. proved strengthen link current month weaken previous month.