Izvorni znanstveni članak
https://doi.org/10.1080/1331677X.2022.2143844
Does China’s stock market react to COVID-19 differently at industry level? Evidence from China
Zhiwei Yang
Muhammad Naeem
Hao Ji
Gang Liu
Yuchun Zhu
Jia Xu
Sažetak
Since the outbreak of the COVID-19 pandemic in 2020, global economic
growth has been negatively affected. The reaction of financial
markets was particularly dramatic, especially in countries severely
affected by the outbreak. Based on Shanghai Stock Exchange (SSE)
data from August 13, 2019 to December 31, 2020, this study investigates
the short-term and the long-term market reactions of industry
indices. The event study method and the Fama-French five-factor
model are used to analyse the effect of the COVID-19 pandemic.
Findings reveal that cumulative abnormal returns (CARs) in most
industries followed a similar short-term trajectory. However, the excess
returns of the SSE Information Technology, SSE Telecommunication
Services and SSE Materials show different performance in the long
term. This study facilitates the analysis of the impact of large public
emergencies, such as global pandemics, on investors’ expectations
and decision-making. It also helps investors to make rational decisions
and the government to formulate targeted policies.
Ključne riječi
COVID-19; stock market response; abnormal returns; industry stock market indices
Hrčak ID:
306808
URI
Datum izdavanja:
30.4.2023.
Posjeta: 164 *