COVID-19, a blessing in disguise for the Tech sector: Evidence from stock price crash risk

Hossain, Ashrafee Tanvir; Masum, Abdullah‐Al; Xu, Jian

doi:10.1016/j.ribaf.2023.101938

Cited by 6 publications

(1 citation statement)

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“…Technology stocks within Industry 4.0 have garnered broad investor attention due to their outperformance across all industry sectors, making them an attractive long-term investment (Emir Hidayat et al 2022). Moreover, anecdotal evidence suggests that the technology sector has exhibited remarkable resilience in economic downturns, possibly attributed to its extensive economy-wide dependency and suitability for "work from home" scenarios (BenSaïda and Litimi 2021; Hossain et al 2023). However, in the long term, the technology sector demonstrates behavioral patterns closely aligned with the global stock market (Rašiová and Árendáš 2023).…”

Section: Introductionmentioning

confidence: 99%

Can ESG Integration Enhance the Stability of Disruptive Technology Stock Investments? Evidence from Copula-Based Approaches

Yu,

Xu,

Chen

2024

JRFM

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This paper provides an investigation into the dependence structure among different disruptive technology sectors driving the Fourth Industrial Revolution and scrutinizes the impact of ESG integration on shaping investments in different tech stock sectors in the presence of ESG consideration, represented by the ESG stock index, versus without specific ESG consideration, represented by the general stock index. The results show that (i) C-vine outperforms R-vine and D-vine when modeling the dependence structure of tech sectors. Intelligent infrastructure is the most crucial sector, with substantial reliance on smart transportation and advanced manufacturing. (ii) ESG integration reduces dependence, especially tail dependence, between tech sectors and the stock market, which benefits the future security sector the most and future communication the least. (iii) ESG integration mitigates risk spillover between tech sectors and the stock market, particularly benefiting final frontiers and intelligent infrastructure. The decrease in downside spillover is more significant compared to upside scenarios. For downside risk, spillover from tech sectors to stock indices is more reduced than the reverse, while the opposite holds for upside risk. These sectoral findings offer insights for market participants in financial market investments, financial regulators in risk management, and listed companies in ESG disclosure.

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Section: Introductionmentioning

confidence: 99%