Did Congress trade ahead? Considering the reaction of US industries to COVID-19

Coronavirus disease outbreak and supply chain disruption: Evidence from Taiwanese firms in China

“…Additionally, we find significant evidence on the relation between the COVID-19 outbreak and the negative cumulative abnormal returns (CARs) on stock performance within the Taiwanese firms manufacturing products in China and marketing them globally. Consistent with Goodell and Huynh (2020) , the results suggest that the COVID-19 outbreak had a major impact on the financial market, among which the tourism industry has been identified as having negative abnormal returns. Our empirical evidence provides insights to entrepreneurs, fund managers and investors on business or investment strategies by globalization as well as lowers the risk of supply chain disruption if a similar epidemic occurs in the future.…”

The recovery of global stock markets indices after impacts due to pandemics

“…Recently, several works focused on the relationship between the COVID-19 pandemic and its economic and financial aspects have been published in the literature ( Ashraf, 2020 , Conlon et al, 2020 , Goodell, 2020 , Goutte et al, 2020 , Sharif et al, 2020 , Yarovaya et al, 2020 , Conlon and McGee, 2020 , Shehzad et al, 2020 , Goodell and Huynh, 2020 ). A simple statistical analysis of the impact of the COVID-19 pandemic on global financial market was explored in ( Zhang et al, 2020 ).…”

Market reactions to the arrival and containment of COVID-19: An event study

“…(2020) show that, in response to the pandemic, global stock market risks respectively conditional correlations between countries’ stock returns have increased substantially. Furthermore, Goodell and Huynh (2020) employ an event study examining market reactions of US industries to COVID-19 news announcements and find that legislators traded ahead of the market. We contribute to the existing literature by studying a comprehensive set of events and especially policy related market reactions.…”