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.