2021-09_Brueckner_Kang_Vespignani.pdf (1.22 MB)
Covid-19 and firms‚Äö'stock price growth: The role of market capitalization
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posted on 2023-05-28, 00:28 authored by Brueckner, M, Kang, W, Joaquin VespignaniJoaquin VespignaniThis paper studies the role of capitalization on firms' stock price growth in response to new cases of Covid-19 infections in the United States. Controlling for firm and time fixed effects, our panel model estimates show that the effect of new cases of Covid-19 infections on firms' stock price growth is significantly increasing in capitalization: For each one standard deviation increase in capitalization, a one standard deviation increase in new cases of Covid-19 infections increases the weekly growth rate of firms' stock prices by about 0.7 percentage points. Effects of capitalization on the impact that Covid-19 infections have on firms' stock price growth are largest in the travel, tourism, and hospitality sector. Smaller but still positive effects of capitalization are present in the pharmaceutical products, high-tech, and banking and finance sectors.
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University of TasmaniaPublication status
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Copyright 2021 University of Tasmania Discussion Paper Series N 2021-09 JEL Classification: G10, E30Repository Status
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