COVID–19’s Impact on Stock Prices Across Different Sectors—An Event Study Based on the Chinese Stock Market

Abstract

In this article, we use an event study approach to empirically study the market performance and response trends of Chinese industries to the COVID-19 pandemic. The study found that transportation, mining, electricity & heating, and environment industries have been adversely impacted by the pandemic. However, manufacturing, information technology, education and health-care industries have been resilient to the pandemic.

Pandemics and the Asia-Pacific Islamic Stocks

“…In line with the risk-return hypothesis, we construct a predictive model that quantifies the response of the Asia-Pacific Islamic stock market as well as the conventional market to UPE. During turbulence, a number of studies have established a negative correlation between risk and market returns for conventional stocks (see Al-Awadhi et al, 2020;He et al, 2020;Phan & Narayan, 2020;Salisu & Akanni, 2020) and a positive correlation for Islamic stocks (see Masih et al, 2018). To circumvent any potential endogeneity bias and persistence effect, the predictive model takes the form (see Westerlund & Narayan, 2012:…”

“…In this paper, we examine the potential of the Asia-Pacific Islamic stock market to serve as a good hedge against uncertainty due to pandemics and epidemics (UPE). The study's motivation has roots in the extant literature, which suggests a strong connection between the COVID-19 pandemic and conventional stocks (see, for example, Al-Awadhi et al, He et al, 2020;Phan & Narayan, 2020;Salisu & Akanni, 2020). Yet, the responsiveness of Islamic stock markets to COVID-19 seems relatively understudied (Ashraf et al, 2020).…”

Stock Market Reactions to COVID-19 Pandemic Outbreak: Quantitative Evidence from ARDL Bounds Tests and Granger Causality Analysis

“…The occurrence of SARS-CoV-2 virus influenced the economic setting and marked investor sentiment, also triggering stock price fluctuations [15]. Yilmazkuday [68] exhibited that an upsurge in daily total fatalities due to SARS-CoV-2 will lessen the international economic activity assessed through by the Baltic Exchange Dry Index.…”

“…Fallahgoul [81] established that the financial segment is the most doubtful, whereas health is the most hopeful over the COVID-19 pandemic. He, Sun, Zhang and Li [15] claimed that manufacturing, information technology, education and health-care Chinese sectors remained stable to COVID-19. Gu, et al [82] found that Chinese manufacturing sector was hardly hit by corona crisis, but construction, information transfer, computer services and software, and health care and social work were positively influenced by COVID-19.…”

Dynamics of Foreign Portfolio Investment and Stock Market Returns During the COVID-19 Pandemic: Evidence From India

“…The existing literature on the impact of COVID-19 is evolving. The literature has found that the pandemic adversely impacts economic growth and trade (Vidya & Prabheesh, 2020) and stock markets (Ertuğrul et al, 2020;Haroon & Rizvi, 2020;He et al, 2020;Huang & Zheng, 2020;Iyke, 2020;Phan & Narayan, 2020;. However, no specific study examines the FPI and stock market returns relationship during the COVID-19 pandemic.…”