Original scientific paper
https://doi.org/10.1080/1331677X.2021.1986676
Effects of the COVID-19 pandemic on stock price performance of blockchain-based companies
Arash Kordestani
Natallia Pashkevich
Pejvak Oghazi
Maziar Sahamkhadam
Vahid Sohrabpour
Abstract
The price of a stock rises or falls in relation to a number of different factors, including changes to the economy brought about by
pandemics. A few studies have already identified the effect of the
COVID-19 pandemic on the stock market. However, empirical evidence is lacking on changes in stock price performance of blockchain-based companies as a result of the COVID-19 pandemic. We
use the event study approach to estimate stock expected returns
by applying an asset pricing model over a thirty-day event window around the announcement on March 11, 2020 by the World
Health Organization (WHO) regarding the outbreak of the coronavirus (COVID-19) as a global pandemic, using a sample of S&P
Global 1200 companies. Overall, our results indicate more sensitivity in blockchain-based companies’ stock prices to the COVID-19
pandemic compared to those of non-blockchain-based companies. Cumulative abnormal returns show that the stock price of
blockchain-based companies recover losses slower than nonblockchain companies. Our findings are important for investors
and shareholders for future pandemics and events.
Keywords
Blockchain; COVID-19 pandemic; event study; stock price
Hrčak ID:
302504
URI
Publication date:
31.3.2023.
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