Impact of Covid-19 on sectoral stock prices: An event study based on US stock market
The impact of COVID-19 on stock prices of different United States economic sectors is examined using event study methodology. Results revealed that the first confirmed case in US on January 21, 2020 was underestimated by investors and did not disturb stock prices significantly. However, the first lo...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Institute of Business Administration
2022-12-01
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| Series: | Business Review |
| Subjects: | |
| Online Access: | https://ir.iba.edu.pk/businessreview/vol17/iss2/2/ |
| _version_ | 1797866204035022848 |
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| author | Nasir Nadeem Ghulam Mujtaba Kiyani Imran Abbas Jadoon |
| author_facet | Nasir Nadeem Ghulam Mujtaba Kiyani Imran Abbas Jadoon |
| author_sort | Nasir Nadeem |
| collection | DOAJ |
| description | The impact of COVID-19 on stock prices of different United States economic sectors is examined using event study methodology. Results revealed that the first confirmed case in US on January 21, 2020 was underestimated by investors and did not disturb stock prices significantly. However, the first local transmission case on February 26, 2020 hit the stock market in the post event window. Due to this event, the stock prices of industries in energy, financials, industrials, real estate and utilities sectors declined but observed price increases in health care, information technology and telecom services industries. First “stay at home” order issued by California State in USA on March 19, 2020, a form of lockdown which restricted public gathering, reduced the market value of consumer staples, health care, industrials, real estate and utilities sectors. This order brought positive changes in stock prices of energy, consumer discretionary, financials, information technology and telecom services sectors. Results of the study can help portfolio managers and investors in the process of asset selection and risk minimization during these types of pandemics. On the other hand, these findings can assist policy makers in designing strategies in advance for financial stability as well as minimizing the negative consequences resulting from COVID-19 related potential health crises in future. |
| first_indexed | 2024-04-09T23:20:16Z |
| format | Article |
| id | doaj.art-f722f327312744628d32c70e47e4cda4 |
| institution | Directory Open Access Journal |
| issn | 1990-6587 2788-9599 |
| language | English |
| last_indexed | 2024-04-09T23:20:16Z |
| publishDate | 2022-12-01 |
| publisher | Institute of Business Administration |
| record_format | Article |
| series | Business Review |
| spelling | doaj.art-f722f327312744628d32c70e47e4cda42023-03-22T03:41:01ZengInstitute of Business AdministrationBusiness Review1990-65872788-95992022-12-01172284010.54784/1990-6587.1463Impact of Covid-19 on sectoral stock prices: An event study based on US stock marketNasir Nadeem 0Ghulam Mujtaba Kiyani1Imran Abbas Jadoon2Comsats University IslamabadComsats University IslamabadComsats University IslamabadThe impact of COVID-19 on stock prices of different United States economic sectors is examined using event study methodology. Results revealed that the first confirmed case in US on January 21, 2020 was underestimated by investors and did not disturb stock prices significantly. However, the first local transmission case on February 26, 2020 hit the stock market in the post event window. Due to this event, the stock prices of industries in energy, financials, industrials, real estate and utilities sectors declined but observed price increases in health care, information technology and telecom services industries. First “stay at home” order issued by California State in USA on March 19, 2020, a form of lockdown which restricted public gathering, reduced the market value of consumer staples, health care, industrials, real estate and utilities sectors. This order brought positive changes in stock prices of energy, consumer discretionary, financials, information technology and telecom services sectors. Results of the study can help portfolio managers and investors in the process of asset selection and risk minimization during these types of pandemics. On the other hand, these findings can assist policy makers in designing strategies in advance for financial stability as well as minimizing the negative consequences resulting from COVID-19 related potential health crises in future.https://ir.iba.edu.pk/businessreview/vol17/iss2/2/covid-19stock priceseconomic sectors |
| spellingShingle | Nasir Nadeem Ghulam Mujtaba Kiyani Imran Abbas Jadoon Impact of Covid-19 on sectoral stock prices: An event study based on US stock market Business Review covid-19 stock prices economic sectors |
| title | Impact of Covid-19 on sectoral stock prices: An event study based on US stock market |
| title_full | Impact of Covid-19 on sectoral stock prices: An event study based on US stock market |
| title_fullStr | Impact of Covid-19 on sectoral stock prices: An event study based on US stock market |
| title_full_unstemmed | Impact of Covid-19 on sectoral stock prices: An event study based on US stock market |
| title_short | Impact of Covid-19 on sectoral stock prices: An event study based on US stock market |
| title_sort | impact of covid 19 on sectoral stock prices an event study based on us stock market |
| topic | covid-19 stock prices economic sectors |
| url | https://ir.iba.edu.pk/businessreview/vol17/iss2/2/ |
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