The Impact of COVID-19 on Stock Market in China

2021 ◽  
Vol 16 (4) ◽  
pp. 714-743
Author(s):  
Nan Li ◽  
◽  
Yuhong Zhu ◽  
Keyword(s):  
Stock Market ◽  
Stock Prices ◽  
Structural Break ◽  
Equity Premium ◽  
Liquidity Premium ◽  
Stock Liquidity ◽  
Spring Festival ◽  
Before And After ◽  
The Impact ◽  
The U.S

This paper studies the impact of the COVID-19 on the stock ambiguity, risks, liquidity, and stock prices in China stock market, before and after the outbreak of COVID-19 during the Chinese Spring Festival holidays in 2020. We measure stock ambiguity using the intraday trading data. The outbreak of COVID-19 has a significant impact on the average stock ambiguity, risk, and illiquidity in China and induces structural break in the market average ambiguity. However, the equity premium and liquidity premium change little during the same period. The market average stock ambiguity and risks decrease, and stock liquidity improves to pre-pandemic levels as the pandemic is under control in China. The market average stock ambiguity and risks in China increase again when the confirmed new cases in the U.S. surge in the second half of 2020. We also find a “flight-to-liquidity” phenomenon, and the equally-weighted (value-weighted) 20-trading-day liquidity premium declined significantly to about –4.42% (–6.48%) during the fourth quarter of 2020.

scholarly journals Information Spillover and Demand Shock Effect of the IPOs on the Stock Price of the Competitors: Evidence From the Korean Stock Market

2020 ◽  
Vol 11 (5) ◽  
pp. 1
Author(s):  
Jae Hoon Min
Keyword(s):  
Stock Market ◽  
Stock Prices ◽  
Stock Price ◽  
Information Transfer ◽  
Share Price ◽  
Korean Stock Market ◽  
Before And After ◽  
Information Spillover ◽  
Public Offering ◽  
The Impact

This paper examines the impact of IPOs on the stock prices of competing companies in the same industry in the Korean stock market. By observing the stock price responses of competitors at the time of IPO announcement and listing, this study attempts to separately examine the effect of IPO's information transfer and its impact on the stock demand of competitors. Before and after the IPO announcement, the stock prices of competitors did not change significantly. On the other hand, during the period surrounding the IPO stock listing, the stock price of competitors showed a significantly negative decline. This suggests that as the IPO stock related information was revealed through the public offering process, it negatively affected the stock price of competing companies. Also, the listing of IPO stocks seems to have adversely affected the stock demand for competing companies. In particular, among the effects of information transfer, the competitive effect is overwhelming, and the factors that influence relative competitiveness in the industry between competitors and an IPO company, such as operating profitability and R&D investment, are found to have a substantial influence on the share price of competitors.

scholarly journals Building stock market resilience through digital transformation: using Google trends to analyze the impact of COVID-19 pandemic

2020 ◽  
Vol 14 (1) ◽  
Author(s):  
Ding Ding ◽  
Chong Guan ◽  
Calvin M. L. Chan ◽  
Wenting Liu
Keyword(s):  
Stock Market ◽  
Stock Prices ◽  
Stock Price ◽  
Digital Transformation ◽  
Google Trends ◽  
Building Stock ◽  
Market Sentiment ◽  
Price Performance ◽  
Novel Coronavirus ◽  
The Impact

Abstract As the 2019 novel coronavirus disease (COVID-19) pandemic rages globally, its impact has been felt in the stock markets around the world. Amidst the gloomy economic outlook, certain sectors seem to have survived better than others. This paper aims to investigate the sectors that have performed better even as market sentiment is affected by the pandemic. The daily closing stock prices of a total usable sample of 1,567 firms from 37 sectors are first analyzed using a combination of hierarchical clustering and shape-based distance (SBD) measures. Market sentiment is modeled from Google Trends on the COVID-19 pandemic. This is then analyzed against the time series of daily closing stock prices using augmented vector autoregression (VAR). The empirical results indicate that market sentiment towards the pandemic has significant effects on the stock prices of the sectors. Particularly, the stock price performance across sectors is differentiated by the level of the digital transformation of sectors, with those that are most digitally transformed, showing resilience towards negative market sentiment on the pandemic. This study contributes to the existing literature by incorporating search trends to analyze market sentiment, and by showing that digital transformation moderated the stock market resilience of firms against concern over the COVID-19 outbreak.

scholarly journals The Impact of COVID-19 on the Stock Price of Socially Responsible Enterprises: An Empirical Study in Taiwan Stock Market

2021 ◽  
Vol 18 (4) ◽  
pp. 1398
Author(s):  
Kuo-Jung Lee ◽  
Su-Lien Lu
Keyword(s):  
Stock Market ◽  
Stock Prices ◽  
Stock Price ◽  
Abnormal Returns ◽  
Recovery Phase ◽  
Socially Responsible ◽  
Cumulative Impact ◽  
Study Approach ◽  
Price Performance ◽  
The Impact

This study examines the impact of the COVID-19 outbreak on the Taiwan stock market and investigates whether companies with a commitment to corporate social responsibility (CSR) were less affected. This study uses a selection of companies provided by CommonWealth magazine to classify the listed companies in Taiwan as CSR and non-CSR companies. The event study approach is applied to examine the change in the stock prices of CSR companies after the first COVID-19 outbreak in Taiwan. The empirical results indicate that the stock prices of all companies generated significantly negative abnormal returns and negative cumulative abnormal returns after the outbreak. Compared with all companies and with non-CSR companies, CSR companies were less affected by the outbreak; their stock prices were relatively resistant to the fall and they recovered faster. In addition, the cumulative impact of the COVID-19 on the stock prices of CSR companies is smaller than that of non-CSR companies on both short- and long-term bases. However, the stock price performance of non-CSR companies was not weaker than that of CSR companies during times when the impact of the pandemic was lower or during the price recovery phase.

scholarly journals The price of the lockdown: The effects of social distancing on the Indian economy and business during the COVID-19 pandemic

2021 ◽  
Vol 23 (1) ◽  
pp. 85-99
Author(s):  
Hasnan Baber ◽  
Rao Tripati
Keyword(s):  
Exchange Rate ◽  
Stock Market ◽  
Stock Prices ◽  
Economic Activity ◽  
International Travel ◽  
Business Activity ◽  
Religious Activities ◽  
Social Distancing ◽  
The Exchange Rate ◽  
The Impact

The decision on immediate lockdown in India put economic, social and religious activities to a grinding halt. The paper examines the impact of the lockdown and social distancing policies on economic activities in India, using a multivariate econometric model for the data collected in the period from 1st January to 31st August 2020. While the social distancing policy is captured in terms of internal movement, domestic travel and international travel restrictions, its effect on the economic activity and the business activity is captured through stock prices, purchasing managers' index and the exchange rate. Confirmed COVID-19 cases and related deaths are also used as the independent variables. The results reveal a significant negative impact of social distancing policies on the economic activity and the business activity, the stock market and the exchange rate. Furthermore, the economic stimulus provided by the Government could not bring a positive influence on the stock market.

scholarly journals The effects of dividend policy to stock prices of listed companies in Vietnam stock market

2020 ◽  
Author(s):  
Thị Lam Hồ ◽  
Thùy Phương Trâm Hồ
Keyword(s):  
Stock Market ◽  
Stock Prices ◽  
Stock Price ◽  
Dividend Policy ◽  
Corporate Value ◽  
Business Managers ◽  
Dividend Payment ◽  
Share Prices ◽  
Finance Management ◽  
The Impact

Dividend policy is one of the most important policies in corporate finance management. Understanding the impact of dividend policy on the distribution of profits, corporate value and thus on the stock price is important for business managers to make policies and for investors to make investment decisions. This study is conducted to evaluate the impact of dividend policy on share prices for companies listed on Vietnam’s stock market in the period from 2010 to 2018, based on the availability of continuous dividend payment data. Using the FGLS method with panel data of 100 companies listed on the HoSE and HNX, we find evidence of the impact of dividend policy on stock prices, supporting supports the bird in the hand and the signal detection theories. The findings of this study help to suggest a few recommendations for business managers and investors.

THE IMPACT OF OIL PRICE SHOCKS ON THE U.S. STOCK MARKET

2009 ◽  
Vol 50 (4) ◽  
pp. 1267-1287 ◽  
Author(s):  
Lutz Kilian ◽  
Cheolbeom Park
Keyword(s):  
Stock Market ◽  
Oil Price ◽  
Oil Price Shocks ◽  
Price Shocks ◽  
The Impact ◽  
The U.S

Testing Market Reaction On Stock Market Delisting In Russia

2021 ◽  
Vol 15 (3) ◽  
pp. 14-27
Author(s):  
Елена Моисеевна Рогова ◽  
Maria Belousova
Keyword(s):  
Stock Market ◽  
Stock Prices ◽  
Statistical Significance ◽  
Abnormal Returns ◽  
Global Market ◽  
Public Companies ◽  
Market Participants ◽  
Study Methodology ◽  
Available Information ◽  
The Impact

This paper expands the available information on the effects of delisting in Russia, and represents a rare empirical analysis of the impact of external events on securities prices in this major global market. We seek to evaluate how stock prices of competing companies fluctuate around the dates of stock market delisting announcements and completion. We analyse stock prices as correlated with company delisting events from 2004 to 2019 on 552 companies on the Russian MOEX Exchange. The event study methodology is used to evaluate the abnormal returns of rival companies close to relevant delisting dates. These data were checked for statistical significance using the standardised Patell residual test. The results indicate a significant competitive effect on stock prices both on the dates of delisting announcement and on completion, with more significant returns close to announcement dates. These effects were found to influence the prospects not just of individual groups of companies, but of all market participants. We may conclude from our results that delisting is not an event limited in effect to only one company, but impacts the industry as a whole, temporarily changing its value. As such, it will interest both shareholders and managers of public companies, and any participants of industries in which delisting occurs.

scholarly journals Interactions between Bus, Metro, and Taxi Use before and after the Chinese Spring Festival

2019 ◽  
Vol 8 (10) ◽  
pp. 445 ◽  
Author(s):  
Jianwei Huang ◽  
Xintao Liu ◽  
Pengxiang Zhao ◽  
Junwei Zhang ◽  
Mei-Po Kwan
Keyword(s):  
Built Environment ◽  
Chinese Spring ◽  
Small Scale ◽  
Demographic Changes ◽  
Interaction Patterns ◽  
Trajectory Data ◽  
Transport Services ◽  
Spring Festival ◽  
Before And After ◽  
The Impact

Public transport plays an important role in developing sustainable cities. A better understanding of how different public transit modes (bus, metro, and taxi) interact with each other will provide better sustainable strategies to transport and urban planners. However, most existing studies are either limited to small-scale surveys or focused on the identification of general interaction patterns during times of regular traffic. Transient demographic changes in a city (i.e., many people moving out and in) can lead to significant changes in such interaction patterns and provide a useful context for better investigating the changes in these patterns. Despite that, little has been done to explore how such interaction patterns change and how they are linked to the built environment from the perspective of transient demographic changes using urban big data. In this paper, the tap-in-tap-out smart card data of bus/metro and taxi GPS trajectory data before and after the Chinese Spring Festival in Shenzhen, China, are used to explore such interaction patterns. A time-series clustering method and an elasticity change index (ECI) are adopted to detect the changing transit mode patterns and the underlying dynamics. The findings indicate that the interactions between different transit modes vary over space and time and are competitive or complementary in different parts of the city. Both ordinary least-squares (OLS) and geographically weighted regression (GWR) models with built environment variables are used to reveal the impact of changes in different transit modes on ECIs and their linkage with the built environment. The results of this study will contribute to the planning and design of multi-modal transport services.

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