Market Reactions to the Arrival and Containment of COVID-19: An Event Study

Heyden, Kim J.; Heyden, Thomas

doi:10.2139/ssrn.3587497

Cited by 30 publications

(31 citation statements)

References 0 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Furthermore, Heyden and Heyden (2020) document that firms with higher tangible assets, bigger size, and greater liquidity appear less affected by the pandemic. Fahlenbrach, Rageth, and Stulz (2020) show that firms with greater financial flexibility are less affected by the pandemic because they can better compensate for the decline in revenue.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Following Ding et al (2020) , Heyden and Heyden (2020) , and Song et al (2020) , we consider five pre-2020 characteristics of financial firms: size, profitability, tangibility, cash, and leverage. By examining these characteristics simultaneously, we can better identify the association between corporate characteristics and stock price reactions to government responses to COVID-19.…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

The impact of policy responses to COVID-19 on U.S. travel and leisure companies

Chen

Demir

García-Gómez

et al. 2020

Annals of Tourism Research Empirical Insights

View full text Add to dashboard Cite

This paper analyzes the impact of government restrictions arising from the COVID-19 pandemic on stock returns of U.S. travel and leisure companies. We demonstrate that the stringency of government restrictions has a negative impact on stock returns even after controlling for the pandemic itself. Moreover, stock prices of travel and leisure firms with a smaller size, less tangibility, and higher cash reserves are more resilient to the COVID-19 related government restrictions. Restrictions have the highest impact on airlines, followed by travel and tourism and casinos and gambling sectors. Our empirical findings provide valuable policy implications for travel and leisure firm managers, financial investors, and policymakers.

show abstract

Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

The impact of policy responses to COVID-19 on U.S. travel and leisure companies

Chen

Demir

García-Gómez

et al. 2020

Annals of Tourism Research Empirical Insights

View full text Add to dashboard Cite

show abstract

“…Research on the financial impact of COVID-19 is nascent, but fast-developing across all asset classes. Heyden and Heyden (2020) and Ramelli and Wagner (2020) focus on equity markets in Europe and the U.S. and show that news about COVID-19 developments and monetary and fiscal policy measures have driven stock prices. Alfaro and others (2020) link aggregate equity market returns and unanticipated changes in predicted COVID-19 infections, while Schoenfeld (2020) examines buy-and-hold asset returns and finds a systematic underestimation of the COVID-19 risk in portfolio management.…”

Section: A Brief Overview Of the Literaturementioning

confidence: 99%

Contagion of Fear

Cevik¹,

Öztürkkal²

2020

IMF Working Papers

View full text Add to dashboard Cite

This paper investigates the impact of infectious diseases on the evolution of sovereign credit default swap (CDS) spreads for a panel of 77 advanced and developing countries. Using annual data over the 2004-2020 period, we find that infectious-disease outbreaks have no discernible effect on CDS spreads, after controlling for macroeconomic and institutional factors. However, our granular analysis using high-frequency (daily) data indicates that the COVID-19 pandemic has had a significant impact on market-implied sovereign default risk. This adverse effect appears to be more pronounced in advanced economies, which may reflect the greater severity of the pandemic and depth of the ensuing economic crisis in these countries as well as widespread underreporting in developing countries due to differences in testing availability and institutional capacity. While our analysis also shows that more stringent domestic containment measures help lower sovereign CDS spreads, the macro-fiscal cost of efforts aimed at curbing the spread of the disease could undermine credit worthiness and eventually push the cost of borrowing higher.

show abstract

“…Diante disso, estudos como o de Ferguson et al (2020) desenvolveram uma série de simulações sobre o avanço da doença, indicando o isolamento social como principal medida governamental para evitar um colapso do sistema de saúde dos países. Todavia, além de questões sanitárias, a pandemia de COVID-19 iniciou uma grande crise financeira global (SALISU;VO, 2020;HEYDEN;HEYDEN, 2020).…”

Section: Introductionunclassified

“…Essa pesquisa se justifica sob diversas perspectivas. Primeiramente, tem-se o dramático efeito da pandemia de COVID-19, afetando pessoas e empresas em todo o mundo (ASHRA, 2020;HEYDEN;HEYDEN, 2020). Ademais, as medidas para conter os efeitos mais danosos da pandemia têm fortes impactos negativos e sem precedentes sobre empresas e o mercado financeiro de uma forma geral (SALISU; VO, 2020).…”

Section: Introductionunclassified

Efeitos Da Pandemia De Covid-19 Sobre a Sustentabilidade Econômico-Financeira De Empresas Brasileiras

Avelar

Ferreira

Silva³

et al. 2020

RGO

View full text Add to dashboard Cite

O estudo desenvolvido visou analisar os efeitos da COVID-19 sobre a sustentabilidade econômico-financeira das empresas brasileiras de capital aberto. Para o desenvolvimento da pesquisa, foram coletados dados da Plataforma Economática® e da Brasil, Bolsa, Balcão (B3). Empregaram-se as seguintes técnicas de análise de dados: análise de conteúdo, estatística descritiva, testes de Kolmogorov-Smirnov e Wilcoxon, coeficiente de correlação de Spearman e análise de regressão múltipla. Como principais resultados da pesquisa, destacam-se: (a) a forte influência do período de evolução da COVID-19 sobre a sustentabilidade econômico-financeira das empresas; (b) a constatação de elevadas perdas de valor dessas organizações no mercado de capitais; (c) a verificação da queda significativa da rentabilidade das empresas e o aumento do nível de endividamento das mesmas; e (d) a observação de que variáveis determinantes clássicas de estrutura de capital explicaram bem o fenômeno de captação de recursos no período. Como principais contribuições da pesquisa, citam-se: (i) análise da influência da COVID-19 sobre as operações das empresas, por meio de dados de mercado e das suas demonstrações financeiras; (ii) perspectiva (via notas explicativas) das empresas sobre os efeitos da pandemia sobre suas operações e medidas adotadas para mitiga-los; e (iii) enfoque à captação de recursos externos para a manutenção das atividades das empresas durante a pandemia.

show abstract

Market Reactions to the Arrival and Containment of COVID-19: An Event Study

Cited by 30 publications

References 0 publications

The impact of policy responses to COVID-19 on U.S. travel and leisure companies

The impact of policy responses to COVID-19 on U.S. travel and leisure companies

Contagion of Fear

Efeitos Da Pandemia De Covid-19 Sobre a Sustentabilidade Econômico-Financeira De Empresas Brasileiras

Contact Info

Product

Resources

About