Short-Term Stock Performance of Health Care Companies in Times of Viral Epidemics and Pandemics-Reference-Cited by-同舟云学术

Short-Term Stock Performance of Health Care Companies in Times of Viral Epidemics and Pandemics

Published:2023-09 Issue:2-3 Volume:51 Page:131-148
ISSN:0197-4254
Container-title:Atlantic Economic Journal
language:en
Short-container-title:Atl Econ J

Author:

Alberti Eugen,Herberger Tim Alexander^ORCID,Ender Manuela

Abstract

AbstractThe spread of Coronavirus Disease 2019 significantly influenced the global economy. Companies from the health care industry could emerge as potential winners in health crises, and their listed stocks could potentially outperform. For the first time in the English and German language literatures, this study investigates whether this occurred and which factors influenced the short-term stock price performance of companies from the health care industry during epidemics and pandemics. An event study of virus-related epidemics and pandemics from 2000 to 2020 was conducted. The results show that the stocks of companies from the health care industry tend to outperform the market during pandemics. The selection of the subindustry in the health care industry and the region of the stock markets significantly influenced abnormal returns. The results are especially relevant for investors seeking short-term trading opportunities but also provide implications for diversifying their portfolios during epidemics and pandemics.

Funder

Otto-Friedrich-Universität Bamberg

Publisher

Springer Science and Business Media LLC

Subject

General Economics, Econometrics and Finance

Link

https://link.springer.com/content/pdf/10.1007/s11293-023-09778-5.pdf

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