Economic policy uncertainty, COVID-19 lockdown, and firm-level volatility: Evidence from China

Yang, Jianlei; Yang, Chunpeng

doi:10.1016/j.pacfin.2021.101597

Cited by 32 publications

(18 citation statements)

References 30 publications

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“…The research results prove a significant additional increase in the volatility of stocks with a higher degree of sensitivity to EPU after the announcement of the COVID-19 pandemic lockdown. Secondly, subsample analyses on firm characteristics confirm that the two-dimension effect of COVID-19 pandemic and EPU is most pronounced for consumer, less-profitable, and high leverage stocks [9]. Wang et al used a sample of Chinese firms, examined stock market reaction to firms that changed their product lines to those related to the management of COVID-19.…”

Section: Related Researchmentioning

confidence: 99%

The Impact of COVID-19 on Stock Market and China’s Economy

Chen¹,

Dong²

2022

Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)

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Under the background of the COVID-19 pandemic, China's economy has been impacted to a certain extent. With the promulgation of the shutdown policy, domestic consumption and production have stagnated, and the stock index fell to a great extent in the first and second quarters. This study evaluated the impact using the OLS regression method to analyze the relationship between the daily newly confirmed number of COVID-19 in China and the stock index and stock turnover. GDP and consumer confidence indicator (CCI) are also the observation objects of this research. By studying the changes in production, consumption, and investment during the epidemic, this paper explains the epidemic's impact on China's stock market and economy. The result shows covid-19 greatly impacts the production capacity of enterprises and the consumption expectation of residents, resulting in a significant decline in GDP and CCI, leading to the downturn of the economy. The epidemic also has a great impact on the stock market. The stock index will fall every time a new epidemic breaks out, and there is a significant correlation between them. The Chinese government has issued an epic prevention and control policy that forces enterprises to suspend their production and many other business activities. This affected the enterprise's production capacity, made its share price fall, and plunged the stock market into a downturn. However, during the epidemic period, the stock market's trading volume increased significantly due to the reduction of consumption and the instability of enterprise operations.

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Section: Related Researchmentioning

confidence: 99%

The Impact of COVID-19 on Stock Market and China’s Economy

Chen¹,

Dong²

2022

Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)

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“…Dalam kondisi "terguncang" dan tidak stabil (Yang & Yang, 2021), dengan meninjau perkembangan perusahaan di Indonesia, terutama posisi keuangannya sangat membantu bagi investor dalam mengambil keputusan keuangan yang terbaik. Selain itu, beberapa faktor penting untuk melihat perkembangan suatu perusahaan yaitu terletak pada unsur manajer atau pengelola perusahaan terutama bagian keuangan, sehingga dapat mengevaluasi kebijakan-kebijakan yang telah diterapkan oleh perusahaan selama masa COVID-19 (Larasati & Kelen, 2021).…”

Section: Pendahuluanunclassified

Profitabilitas Sektor Manufaktur Di Bursa Efek Indonesia Selama Masa Pandemi Covid-19

Kelen¹,

Liau²,

Ole³

2022

JPK

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Kinerja keuangan perusahaan merupakan tolok ukur untuk mengetahui hasil baik maupun buruk yang diperoleh oleh suatu perusahaan. Pandemi COVID-19 yang terjadi sejak awal 2020 di Indonesia membawa dampak terhadap kebijakan Pemerintah Indonesia untuk menerapkan pembatasan aktivitas masyarakat (seperti PSBB maupun PPKM), yang berujung pada penurunan kinerja keuangan perusahaan terutama pada kondisi profitabilitas. Peneliti menduga timbulnya perbedaan profitabilitas antar sektor selama masa pandemi COVID-19, karena selama penerapan kebijakan tersebut, perusahaan mengalami penurunan pendapatan, tingginya biaya produksi, serta rendahnya produktivitas yang berbeda-beda pula. Dengan menggunakan sampel sebanyak 186 perusahaan dari tiga sektor yang tergolong sebagai manufaktur di Bursa Efek Indonesia (BEI), hasil penelitian menyimpulkan bahwa terdapat perbedaan yang signifikan (baik secara statistik deskriptif maupun pengujian Kruskal-Wallis) antar tiga sektor manufaktur (sektor industri dasar dan kimia, aneka industri, dan industri barang konsumsi). Kata kunci: kemampulabaan, dan kinerja keuangan.

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“…(2021), Hoehn‐Velasco et al . (2021), Yang and Yang (2021). We also highlight the non‐uniform nature of the impact that may be conditioned by various factors such as pace of infection spread, governance quality, the efficacy of lockdown implementation and pre‐existing firm‐specific factors.…”

Section: Introductionmentioning

confidence: 99%

Effect ofCOVID‐19 Lockdown on the Profitability of Firms in India*

Jain

Kumar

2023

J of App Econs and Policy

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We examine the effect of COVID-19-induced lockdown on the profitability of listed firms in India. We use quarterly income statement of 4168 listed firms for the period between April-June 2020 quarter and April-June 2022 quarter and compare their financial data with previous quarters (2015)(2016)(2017)(2018)(2019). Using a difference-in-difference estimation framework and various profitability measures, we find that the COVID-19 lockdown has reduced profits by around 15 per cent for listed firms in India. Our results are robust to various robustness tests and alternate specifications. We find evidence of firms losing revenues more than expenses, thus leading to decline in profits. The main effect is conditioned by firm-specific factors. Specifically, firms that are smaller, older, unlisted and that do not belong to any group witnessed larger decline in profitability due to lockdown. Additionally, the effect of lockdown is more pronounced in areas that had lower mobility and higher COVID-19 spread. These results underscore the importance of institutional factors and pre-existing firm characteristics in conditioning the impact of lockdown on firm profitability.

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Economic policy uncertainty, COVID-19 lockdown, and firm-level volatility: Evidence from China

Cited by 32 publications

References 30 publications

The Impact of COVID-19 on Stock Market and China’s Economy

The Impact of COVID-19 on Stock Market and China’s Economy

Profitabilitas Sektor Manufaktur Di Bursa Efek Indonesia Selama Masa Pandemi Covid-19

Effect ofCOVID‐19 Lockdown on the Profitability of Firms in India*

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