The asymmetric effect of infectious disease equity market volatility for the physical education economy: implication for a post-Covid world

Abstract

Due to the growing importance of the sports economy and the severe impact of the current Covid-19 pandemic on it, this paper examines the way in which the infectious disease stock market volatility (ID-EMV) tracker affects the Covid world sports economy from an asymmetrical perspective. We selected the newspaper-based ID-EMV index and Wind Physical Education Concept Index (PEC) for our research. First, the results of conventional causality tests showed that the tests ID-EMV and PEC were unable to detect causality, implying that stock market volatility stemming from COVID-19 risk had no impact on the sports economy. However, considering potential asymmetric effects in this relationship, we further investigated whether ID-EMV could significantly affect PEC under both positive and negative shocks. The empirical results confirm the existence of asymmetric effects. Therefore, we are the first to focus on this asymmetric effect and conduct empirical research, which may help provide educators and financial market participants with a novel research perspective.