COVID-19: Fear of pandemic and short-term IPO performance

Mazumder, Sharif; Saha, Pritam

doi:10.1016/j.frl.2021.101977

Cited by 53 publications

(67 citation statements)

References 56 publications

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“…Not only that, but underpricing stocks also decreased steadily and consistently every week, accompanied by a decrease in the correlation coefficient. This is, however, consistent with the literature, which shows the initial return during pandemic tend higher in the initial day but decreases after several weeks (Mazmuder & Saha, 2021). It can be concluded that IPO shares only experience underpricing on the first day, but it is no longer statistically significant in the short term.…”

Section: Figure 1 Number Of Underpricing Stock During the Research Periodsupporting

confidence: 92%

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IPO Stock Performance amidst the COVID-19 Pandemic: Has It been Undervalued?

Kuswanto¹

2021

Journal of Accounting and Business Dynamics

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The purpose of this study is to examine the underpricing phenomenon from IPO firms listed in Indonesia Stock Exchange during the COVID-19 pandemic. Using purposive sampling method, 34 IPO firms after the announcement of pandemic COVID-19 were selected as research samples. The IPO stock closing prices and returns on days 1, 5, 10, 15, and 20 were analyzed using paired sample t-test. The findings show underpricing phenomenon still occurred during the pandemic period. However, the underpricing only documented statistically significant on the T1 of the trading day. After the first day of trading, the stock’s returns consistently declined and were proved statistically insignificant at T5, T10, T15, and T20.The purpose of this study is to examine the underpricing phenomenon from IPO firms listed in Indonesia Stock Exchange during the COVID-19 pandemic. Using purposive sampling method, 34 IPO firms after the announcement of pandemic COVID-19 were selected as research samples. The IPO stock closing prices and returns on days 1, 5, 10, 15, and 20 were analyzed using paired sample t-test. The findings show underpricing phenomenon still occurred during the pandemic period. However, the underpricing only documented statistically significant on the T1 of the trading day. After the first day of trading, the stock’s returns consistently declined and were proved statistically insignificant at T5, T10, T15, and T20.

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Section: Figure 1 Number Of Underpricing Stock During the Research Periodsupporting

confidence: 92%

“…The latest research of COVID-19 pandemic study-related underpricing was Mazmuder & Saha (2021). They investigated the impact of fear associated with the pandemic on IPO stock at NYSE, NASDAQ, and AMEX, and are ADRs.…”

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confidence: 99%

IPO Stock Performance amidst the COVID-19 Pandemic: Has It been Undervalued?

Kuswanto¹

2021

Journal of Accounting and Business Dynamics

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“…The retail investors paid more attention to the FEARS terms. Mazumder and Saha (2021) This study proxies the fear by constructing the equally weighted index of both newly infected cases and deaths over the period from January-2019 to July-2020. The set of IPO firms’ characteristics were employed for regression to see how the IPO firms perform during the COVID-19 pandemic.…”

Section: Literature Reviewmentioning

confidence: 99%

Feverish sentiment and global equity markets during the COVID-19 pandemic

Huynh

Foglia

Nasir

et al. 2021

Journal of Economic Behavior & Organization

117

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This paper proposes a new approach to estimating investor sentiments and their implications for the global financial markets. Contextualising the COVID-19 pandemic, we draw on the six behavioural indicators (media coverage, fake news, panic, sentiment, media hype and infodemic) of the 17 largest economies and data from January 2020 to February 2021. Our key findings, obtained using a time-varying parameter-vector auto-regression (TVP-VAR) model, indicate the total and net connectedness for the new index, entitled ‘feverish sentiment’. This index provides us insight into economies that send or receive the sentiment shocks. The construction of the network structures indicates that the United Kingdom, China, the United States and Germany became the epicentres of the sentimental shocks that were transmitted to other economies. Furthermore, we also explore the predictive power of the newly constructed index on stock returns and volatility. It turns out that investor sentiment positively (negatively) predicts the stock volatility (return) at the onset of COVID-19. This is the first study of its kind to assess international feverish sentiments by proposing a novel approach and its impacts on the equity market. Based on empirical findings, the study also offers some policy directions to mitigate the fear and panic during the pandemic.

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“…For example, global stock market volatility increased sharply while the stock prices dropped aggressively amid an unprecedented disruption to the global economic prospects and world trade. As a result, a growing stream of literature has emerged, aiming at analyzing the adverse impact of uncertainty and fear related to the COVID-19 pandemic in different contexts, for example, stock market performances ( Baig et al., 2021 ; Cepoi, 2020 ; Topcu and Gulal, 2020 ; Ashraf, 2021 ; Corbet et al., 2021 ), commodity and cryptocurrencies markets ( Bakas and Triantafyllou, 2020 ; Conlon and McGee, 2020 ; Salisu et al., 2020 ; Amar et al., 2021 ;), and primary equity markets ( Baig and Chen, 2021 ; Mazumder and Saha, 2021 ).…”

Section: Introductionmentioning

confidence: 99%

Corporate dividend policy in the time of COVID-19: Evidence from the G-12 countries

Ali

2022

Finance Research Letters

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This paper examines how the COVID-19 pandemic affects corporate dividend policy. Utilizing a sample of 8889 firms listed in the G-12 countries, the findings show that although the proportion of dividend cuts and omissions is significantly higher during the pandemic, yet the majority of firms could either maintain or increase dividends. By doing so, firms might aim to purse more stable dividend policies and signal their financial prospects during the crisis, as posited by dividend signaling theory. Logit regression findings reveal that firm profitability, earnings prospects, size and leverage appear to be important determinants of dividend policy decisions during the pandemic.

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COVID-19: Fear of pandemic and short-term IPO performance

Cited by 53 publications

References 56 publications

IPO Stock Performance amidst the COVID-19 Pandemic: Has It been Undervalued?

IPO Stock Performance amidst the COVID-19 Pandemic: Has It been Undervalued?

Feverish sentiment and global equity markets during the COVID-19 pandemic

Corporate dividend policy in the time of COVID-19: Evidence from the G-12 countries

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