Comparison of Complex Networks of Stock Markets and Economic Variables in the Period Before and After the Outbreak of Coronavirus (Covid-19)

Saneifar, Matin; Saeedi, Parviz

doi:10.29252/jemr.10.40.123

Cited by 2 publications

(2 citation statements)

References 24 publications

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“…World prices for silver and copper also fell by more than 35% due to the shock of the virus. In general, fluctuations in macroeconomic variables will affect the income of listed companies and ultimately changed the value of stock exchange indices (Saneifar and Saeidi, 2020). Iran's economy has also been affected by the negative effects of the coronavirus.…”

Section: Literature Reviewmentioning

confidence: 99%

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The effect of R&D activities on the market response and company's performance during the shock caused by the COVID-19 pandemic in Iran

Behbahaninia

Golbidi

2022

JAAR

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PurposeThe purpose of this study is to investigate whether research and development (R&D) activities reduce the performance damage caused by a critical situation, such as the COVID-19 pandemic, or not. Also, this study tries to explain whether the market in its reactions pays attention to companies' R&D activities or not during the COVID-19 critical situation.Design/methodology/approachThe official announcement of the COVID-19 disease in Iran is considered the date of the event in this study. To consider the effect of R&D activities on the performance, three similar time periods before and after the coronavirus pandemic have been considered. Due to the widespread prevalence of coronavirus in Iran, this country has been selected to answer the research questions.FindingsThe results showed that the companies that have more R&D activities performed better than other companies during this period and were able to better manage this crisis. Furthermore, companies with more R&D activities suffered lower abnormal returns during coronavirus shocks than other companies.Research limitations/implicationsBased on the research results, the issues that were discussed on the importance of R&D activities in the accounting literature is confirmed, and the results show the importance of R&D activities on the company's ability to overcome crises.Practical implicationsBased on the results of this research, it can be suggested that even in difficult and critical conditions, investment in R&D activities should not be stopped and decrease.Originality/valueIn the accounting literature, the long-term effect of R&D activities on the survival of companies has always been considered. In this study, the effect of R&D activities on market response and firm performance in a real shock is investigated, which is the innovation of this research.

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Section: Literature Reviewmentioning

confidence: 99%

“…The impact of economic variables on capital markets has increased in the post-virus period. Falling world oil prices and fluctuations in precious metals have hurt the economies of all countries, which, of course, resulted in the most from falling prices in capital markets (Saneifar and Saeedi, 2020).…”

Section: Introductionmentioning

confidence: 99%

The effect of R&D activities on the market response and company's performance during the shock caused by the COVID-19 pandemic in Iran

Behbahaninia

Golbidi

2022

JAAR

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The Tehran Stock Exchange Reaction to Covid-19 Outbreak Announcement

Alibeigof,

Safarzadeh

2023

jour

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While prior research on the Covid-19 effects on stock markets focused on developed countries, this study aims to examine the impact of Covid-19 on Iran’s emerging and developing market. The study sample comprised 245 companies listed on the Tehran Stock Exchange (TSE). This study uses panel-data regression models to evaluate the influence of the Covid-19 announcement on stock returns from February 12th to February 26th, 2020. The study results indicate that the announcement of the Coronavirus outbreak in Iran had not caused an abnormal return on the TSE. In examining the impact of this event on various industries, we have observed that other sectors did not show abnormal reactions through the news except for the three groups of banks, base metals, and pharmaceutical companies. Discussion and conclusion: the findings of this study suggest the poor market efficiency of TSE. Considering TSE is subject to macro-variables in the country, we have found that the metal industry in Iran converges with the global market of metals. Future research and implication: the investors should pay attention to international events affecting the metal industry, which brings new topics to focus on for future research. To investigate the long-term effect of this event on the capital market, future research is suggested to use models such as GARCH.

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Comparison of Complex Networks of Stock Markets and Economic Variables in the Period Before and After the Outbreak of Coronavirus (Covid-19)

Cited by 2 publications

References 24 publications

The effect of R&D activities on the market response and company's performance during the shock caused by the COVID-19 pandemic in Iran

The effect of R&D activities on the market response and company's performance during the shock caused by the COVID-19 pandemic in Iran

The Tehran Stock Exchange Reaction to Covid-19 Outbreak Announcement

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