The impact of COVID-19 vaccination on stock market: is there any difference between developed and developing countries?

Oanh, Tran Thi Kim

doi:10.1016/j.heliyon.2022.e10718

Cited by 9 publications

(5 citation statements)

References 44 publications

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“…The findings are consistent with prior studies on the co-movements of the stock markets and tragedy fears. This relationship turns weaker and has more minor fluctuations in the correlations with the announcement of the mRNA-based COVID-19 vaccines [ 18 ], implying that the COVID-19 vaccinations assist in stabilizing the global equity market [ 23 , [39] , [40] , [41] ]. However, our results are the opposite of the study conducted by Bakry et al [ 16 ] regarding Pfizer-BioNTech’s successfully developing a COVID-19 vaccine which makes volatility in stock markets increase, although this implies a significant positive development.…”

Section: Resultsmentioning

confidence: 99%

When the market got the first dose: Stock volatility and vaccination campaign in COVID-19 period

Bao

Nguyen

2023

Heliyon

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Section: Resultsmentioning

confidence: 99%

When the market got the first dose: Stock volatility and vaccination campaign in COVID-19 period

Bao

Nguyen

2023

Heliyon

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“…Similarly, researchers (Baek and Lee, 2022; Apergis et al ., 2022) investigated the impact of vaccines on US stock markets and the Canadian stock market and unearthed that vaccine news lessens risk and increases investor confidence in stock investing. Oanh (2022) also examined that COVID-19 vaccination has an optimistic effect on developing nation equities.…”

Section: Literature Reviewmentioning

confidence: 99%

Investor’s behaviour to COVID-19 vaccine: an event study on health and pharmaceutical sector in India

Gupta

2023

IJPHM

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Purpose The devastating acute COVID-19 epidemic crippled the global economy in 2020. Within a month of the COVID-19 epidemic, every industry saw its stock prices plummet the most. Ending the COVID-19 pandemic will need equitable access to safe and effective vaccinations. This study aims to look at the link between COVID-19 vaccination and the stock markets for health and pharmaceutical sector. Design/methodology/approach The researchers used a mean-adjusted return model and event research approach to figure out how the first dose of the COVID-19 vaccine affects health and pharmaceutical sector stock market returns. Findings The evidence-based outcome indicates that immunisation announcement affects health and pharmaceutical company returns. Furthermore, the study concludes that the health and pharmaceutical industry is inefficient for a short period of time, but after 41 days, the sector absorbs the noisy information. Originality/value Since the outbreak, the development of COVID-19 vaccines has been a key focus of shareholders and investors. This study is unique in that it investigates the effect of the first dosage of SARS-CoV-2 vaccination on equity returns in the health and pharmaceutical industries, and it is likely to make a substantial contribution to the capital market literature on event methodology.

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“… 23 – 26 Therefore, the approvals of Covid-19 vaccines lighted the hope of humanity and economic recovery, and this phenomenon is reflected in the stock market. 14 , 25 However, none of them consider the existence of cross-dependency and heterogeneity problems. Therefore, this study incorporated the cases and vaccine of COVID-19 growth to the ASEAN stock returns.…”

Section: Background and Literature Reviewmentioning

confidence: 99%

The stock market reaction to COVID-19 vaccination in ASEAN

et al. 2023

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Previous studies have shown that the confirmed cases drive investor sentiment, reflecting the stock's return. Based on this, the vaccination growth is also expected to drive the investor’s sentiment, which can be reflected in the return of the stock market in ASEAN. Therefore, this study explores the vaccination impact on stock returns in ASEAN countries. This study contributes to the gap of taking the COVID-19 vaccination impact to the stock return into account by using the panel regression model with HC and Driscoll and Kraay robust covariance matrix estimator, which addresses the cross-dependency and heterogeneity problems. This study is one of the early studies of the topic, especially in ASEAN. The panel regression model with HC and Driscoll and Kraay robust covariance matrix estimator uses three variables: the daily stocks return, vaccine growth, and cases growth. It is a balanced panel data that includes six countries and 117 daily series data, making 702 observations used in the study. The results show conflicting results where daily vaccination growth negatively affects the stock return. This problem can arise for several reasons, such as the uncertainty in the financial market and cross-dependency and heterogeneity detected in the model. We can see that the investors still have a negative sentiment because COVID-19 has resulted in uncertainty on the financial market in ASEAN. This gives us practical implications that the ASEAN country members’ government needs to push vaccination policy more aggressively.

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The impact of COVID-19 vaccination on stock market: is there any difference between developed and developing countries?

Cited by 9 publications

References 44 publications

When the market got the first dose: Stock volatility and vaccination campaign in COVID-19 period

When the market got the first dose: Stock volatility and vaccination campaign in COVID-19 period

Investor’s behaviour to COVID-19 vaccine: an event study on health and pharmaceutical sector in India

The stock market reaction to COVID-19 vaccination in ASEAN

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