COVID-19 Pandemic on Investment Value in Government and Corporate Bond: Evidence from Thailand
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Abstract
This paper investigates the effect of economic factors and pandemic of COVID-19 on investment value in government and corporate bonds in Thailand. Using multiple linear regression framework for monthly data from January 2013 to October 2020, our results show that COVID-19 has impacted investment in government and corporate bond differently. COVID-19 increases investment in government bond as investors seek safe investment. However, COVID-19 diminishes investment in corporate bond as crisis worsens company debt structure. Furthermore, outstanding government bond value, manufacturing production index have significant positive relationship with investment in government bond while only outstanding corporate bond value has significant positive relationship with investment in corporate bond.
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