Abstract
AbstractThis study analyzes the wealth effects of SEO announcements in the US during the COVID-19 pandemic and its main determinants. We find significantly negative abnormal returns of − 8.6%. This provides persuasive evidence that capital markets reacted particularly negative during this period, reflecting higher degrees of uncertainty. We furthermore find that larger firms experience a better SEO performance and that COVID-19 related biotech & healthcare firms react particularly negative. This effect is more negative the lower the company valuation beforehand.
Funder
Technische Universität Darmstadt
Publisher
Springer Science and Business Media LLC
Subject
Economics and Econometrics,Business and International Management
Reference53 articles.
1. Bureau of Economic Analysis (2020) Gross domestic product. https://www.bea.gov/data/gdp/gross-domestic-product, Retrieved 2021-9-17
2. Baig A, Butt HA, Haroon O, Rizvi SAR (2020) Deaths, panic, lockdowns and US equity markets: the case of COVID-19 pandemic. Finance Res Lett 38(2021):1–9
3. Baker SR, Bloom N, Davis SJ, Kost K, Sammon M, Viratyosin T (2020) The unprecedented stock market reaction to COVID-19. Rev Asset Pricing Stud 10(4):742–758
4. Bayless M, Chaplinsky S (1996) Is there a window of opportunity for seasoned equity issuance? J Finance 51(1):253–278
5. Blau BM, Brough TJ, Thomas DW (2014) Economic freedom and the stability of stock prices: a cross-country analysis. J Int Money Finance 41(2014):182–196
Cited by
1 articles.
订阅此论文施引文献
订阅此论文施引文献，注册后可以免费订阅5篇论文的施引文献，订阅后可以查看论文全部施引文献