Izvorni znanstveni članak
https://doi.org/10.1080/1331677X.2021.1941179
Outbreak of epidemic diseases and stock returns: an event study of emerging economy
Farrukh Shahzad
Dai Yannan
Hafiz Waqas Kamran
Wanich Suksatan
Nik Alif Amri Nik Hashim
Asif Razzaq
Sažetak
The massive contagion diseases such as COVID-19 amongst
others, has affected nearly all the economies and business concerns that leads to substantial decline in the cashflows and
returns dynamics. Considering the same, this paper intends to
investigate the impact of outbreak of epidemic diseases on the
stock return (observed through cumulative average abnormal
return (CAAR)) for the listed banks in Pakistan from 2011 to 2020.
Event study method was employed and five days pre and ten
days post event of each disease were observed as an event window. The results confirm that none of the epidemic disease outbreak significantly determines the CAAR for all listed banks,
except COVID-19 and Dengue Fever during the event day. There
is a negative and significant impact of COVID-19 on the stock
returns for all the banks in Pakistan from the event day to day
eight except day seven. More specifically, COVID-19 is found to
be a significant indicator for the stock returns of private banks.
However, in case of public listed banks, only the outbreak of HIV
cases possesses significant and positive impact on CAAR at the
day of event. These findings would guide all stakeholders such as
investors, financial analysts, regulators, and chief risk officers specifically in banks to make strategic decisions while analyzing the
relationship between epidemic outbreaks and stock returns.
Ključne riječi
Epidemic diseases; bank’s return; stock market; event study; CAAR
Hrčak ID:
302273
URI
Datum izdavanja:
31.3.2023.
Posjeta: 733 *