Journal of Applied Finance & Banking

COVID-19 Virus Pneumonia’s Economic Effect in Different Industries: A Case Study in China

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• Abstract

   

  Starting from late 2019, COVID-19 virus pneumonia has swept mainland China during the whole Spring Festival. In order to prevent the spread of the virus, people have to stay at home and avoid going out. This has affected the economic development of many industries to some extent, especially tourism and services, which relied on high population mobility to make profits during the Spring Festival holiday in the past. We use the event study method to explore the impact of pneumonia on A-share listed companies’ stock returns in different industries in China. Results show that there indeed some negative effect on economy, and vary in different industries.

   

  JEL classification numbers: G10

  Keywords: COVID-19, event study, stock return.