COVID-19 vaccines and global stock markets

Chan, Kam Fong; Chen, Zhuo; Wen, Yuanji; Xu, Tong

doi:10.1016/j.frl.2022.102774

Cited by 39 publications

(32 citation statements)

References 32 publications

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“…No effect is documented for stock markets in Asia and Australia. Chan et al (2021) examine the stock market reactions to the human clinical trials of COVID-19 vaccine candidates. After controlling for both the pandemic itself and investor sentiment, they find a positive abnormal return in forty-nine countries on the first day of clinical trials.…”

Section: Vaccines and Financial Marketsmentioning

confidence: 99%

“…Second, we contribute to the discussion on the role of vaccinations in financial markets. Earlier studies demonstrated that the arrival of the vaccines (or even successful trials) had benefited stock prices around the world (Kucher et al 2021;Chan et al 2021;Acharya et al 2020) and helped to stabilize the financial markets (Hong et al 2021;Demir et al 2021;Rouatbi et al 2021). Although the pandemic exerted an unprecedented impact on commodities, to the best of our knowledge, the effect of vaccinations on the volatility of commodity companies has not yet been explored.…”

Section: Introductionmentioning

confidence: 99%

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COVID-19 Vaccinations and the Volatility of Energy Companies in International Markets

Demir

Kizys

Rouatbi

et al. 2021

JRFM

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The COVID-19 pandemic has elevated both the risk and volatility of energy companies. Can mass vaccinations restore stability within this sector? To answer this question, we investigate stock market data from fifty-eight countries from January 2020 to April 2021. We document that vaccination programs assist in decreasing the volatility of energy stocks around the world. The drop in volatility is statistically and economically significant and robust to many considerations. The observed phenomenon survives a broad battery of control variables; it is also independent of the employed regression model or the volatility measurement approach. Moreover, the effect is not driven by the dynamics of the pandemic itself or the associated government interventions. Finally, we find the influence of vaccinations on energy stock volatility to be more pronounced in developed markets rather than in emerging ones. Our findings bear clear practical implications: policy makers around the world should consider the essential role of vaccinations in the energy sector.

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Section: Vaccines and Financial Marketsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

COVID-19 Vaccinations and the Volatility of Energy Companies in International Markets

Demir

Kizys

Rouatbi

et al. 2021

JRFM

View full text Add to dashboard Cite

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“…We extend the discussion on how the financial markets react to the news on vaccines (Demir et al 2021;Rouatbi et al 2021), focusing on the travel and leisure industry. While few studies scrutinize this issue (Chan et al 2022;Acharya et al 2021), there is not yet a study that focuses on the travel and leisure industry where vaccinations play a crucial role.…”

Section: Introductionmentioning

confidence: 99%

Sail Away to a Safe Harbor? COVID-19 Vaccinations and the Volatility of Travel and Leisure Companies

Demir

Kizys

Rouatbi

et al. 2022

JRFM

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This paper examines the impact of vaccination programs on the stock market volatility of the travel and leisure sector. Using daily data from 56 countries over the period from January 2020 to March 2021, we find that vaccination leads to a decrease in the investment risk of travel and leisure companies. Vaccination results in a decrease in the volatility of stock prices of travel and leisure companies. The drop in volatility is robust to many alternative estimation techniques, different volatility measures, and various proxies for vaccinations. Moreover, this effect cannot be explained by an array of control variables; this includes the pandemic itself and both the containment and closure policies that followed. Furthermore, the beneficial role of vaccinations is relatively stronger in emerging markets than in developed ones.

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“…Also, Chan studied how the stock market has reacted positively toward the production and sale of COVID-19 vaccines. According to the research, the mean abnormal stock return was economically and statistically significant at a level of 8.08 points at the beginning of the trial, and for main vaccine producers, the positive effect was even stronger during the beginning of phase three trial [3]. These studies confirmed that there exist multiple factors that eventually resulted in the increasing trend demonstrated by the in-pandemic stock market, represented by the U.S stock market, among which the positive effect of COVID-19 vaccines is significant.…”

Section: Related Researchmentioning

confidence: 93%

Analysis of Impact of COVID-19 on Stock Prices of Medical Companies Based on Optimal Investment Portfolio Construction

Cui¹

2022

BCPBM

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Ever since the outbreak of the COVID-19 pandemic, the focus on investments in medical and pharmaceutical enterprises has risen prominently. Overall, it is expected that the stock market would be negatively impacted by the pandemic, while as it turned out, the development, production, and sale of COVID-19 vaccines have brought about nonnegligible increases in revenues and profits for vaccine producers such as Moderna, Pfizer, and Astra Zeneca. Therefore, in-pandemic investors for medical and pharmaceutical firms desire a comprehensive analysis that takes both the negative influence COVID-19 had on the stock market and the positive impacts the sale of COVID-19 vaccines had on the medical and pharmaceutical industry into account to help with investment decisions. This study chooses five main pharmaceutical and biomedical companies worldwide that have been producing COVID-19 vaccines, and applies Mean-Variance Model to construct optimal investment portfolios and portfolios with minimum variance for both the pre-pandemic period (from January 2019 to December 2019) and in-pandemic period (from January 2020 to April 2022) based on monthly stock prices of these five firms, and analyzes the resulting portfolios by evaluating the influence from both the COVID-19 pandemic and the sale of COVID-19 vaccines. This study shows that for most corporates chosen, the positive impact from the production and sale of COVID-19 vaccines outweighed the negative impact of the pandemic itself, and it suggests that the investors should invest in Astra Zeneca before the pandemic exploded and invest in Moderna after the outbreak of the pandemic.

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COVID-19 vaccines and global stock markets

Cited by 39 publications

References 32 publications

COVID-19 Vaccinations and the Volatility of Energy Companies in International Markets

COVID-19 Vaccinations and the Volatility of Energy Companies in International Markets

Sail Away to a Safe Harbor? COVID-19 Vaccinations and the Volatility of Travel and Leisure Companies

Analysis of Impact of COVID-19 on Stock Prices of Medical Companies Based on Optimal Investment Portfolio Construction

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