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Year 2020, Volume: 9 Issue: 2, 68 - 79, 30.06.2020
https://doi.org/10.17261/Pressacademia.2020.1215

Abstract

References

  • Cappiello, L., Engle, Sheppard, K., (2006), Asymmetric Dynamics in the Correlations of Global Equity and Bond Returns, Journal of Financial Econometrics, Vol. 4, No. 4, pp. 537–572
  • Chen, C. D., Chen, C. C., Tang, W. W., and Huang, B. Y. (2009). The positive and negative impacts of the SARS outbreak: A case of the Taiwan industries. The Journal of Developing Areas, 281-293.
  • Chen, X., Ghysels, E., (2010), News-Good or Bad-and Its Impact on Volatility Predictions over Multiple Horizons, The Society for Financial Studies, Oxford University Press.
  • Chen, M. P., Lee, C. C., Lin, Y. H., & Chen, W. Y. (2018). Did the SARS epidemic weaken the integration of Asian stock markets? Evidence from smooth time-varying cointegration analysis. Economic research-Ekonomska istraživanja, 31(1), 908-926.
  • Chen, M. H., Jang, S. S., and Kim, W. G. (2007). The impact of the SARS outbreak on Taiwanese hotel stock performance: an event-study approach. International Journal of Hospitality Management, 26(1), 200-212.
  • Donadelli, M., Kızys, R., & Rıedel, M. Globally (2015). Dangerous Diseases, Sentiment and Pharmaceutical Stock Prices. http://sfm.finance.nsysu.edu.tw/php/Papers/CompletePaper/038-1674094255.pdf
  • Donadelli, M., Kizys, R., & Riedel, M. (2017). Dangerous infectious diseases: Bad news for Main Street, good news for Wall Street?. Journal of Financial Markets, 35, 84-103.
  • Keogh-Brown, M. R., Smith, R. D., Edmunds, J. W., and Beutels, P. (2010). The macroeconomic impact of pandemic influenza: estimates from models of the United Kingdom, France, Belgium and The Netherlands. The European Journal of Health Economics, 11(6), 543-554.
  • McKibbin, W. J., and Fernando, R. (2020). The global macroeconomic impacts of COVID-19: Seven scenarios
  • Morales, L., and Andreosso-O'Callaghan, B. (2020). Covid19: Global Stock Markets “Black Swan”. Critical Letters in Economics & Finance, 1(1), 1
  • Nelson, B., D, (1991), Conditional Heteroskedasticity in Asset Returns: A New Approach, Econometrica, Vol. 59, No. 2., pp. 347-370
  • Nippani, S., & Washer, K. M. (2004). SARS: a non-event for affected countries’ stock markets?. Applied Financial Economics, 14(15), 1105-1110.
  • Sherman IW. Dünyamızı Değiştiren On İki Hastalık. (Çev:Emel Tümbay, Mine Arığ Küçüker). Türkiye İş Bankası Yayınları. İstanbul, 2016.
  • Solarin, S. A. (2015). September 11 attacks, H1N1 influenza, global financial crisis and tourist arrivals in Sarawak. Anatolia, 26(2), 298-300.
  • Tiryaki, H.N., Ekinci, A., (2015). "Finansal bulaşıcılık çerçevesinde küresel kriz ve Türkiye'ye etkileri", Sakarya İktisat Dergisi, Cilt.4, Sayı:1, 1-30
  • Verikios, G., McCaw, J. M., McVernon, J., and Harris, A. H. (2012). H1N1 influenza and the Australian macroeconomy. Journal of the Asia Pacific Economy, 17(1), 22-51.
  • Wang, Y. H., Yang, F. J., and Chen, L. J. (2013). An investor's perspective on infectious diseases and their influence on market behavior. Journal of Business Economics and Management, 14(sup1), S112-S127.
  • Worldometers, URL: https://www.worldometers.info/coronavirus (2020)
  • Zeren, F., and Hızarcı, A. The Impact Of Covıd-19 Coronavırus On Stock Markets: Evıdence From Selected Countrıes. Muhasebe ve Finans İncelemeleri Dergisi, 3(1), 78-84

THE IMPACT OF COVID-19 TO GLOBAL PHARMACEUTICALS AND BIOTECHNOLOGY COMPANY STOCKS RETURNS

Year 2020, Volume: 9 Issue: 2, 68 - 79, 30.06.2020
https://doi.org/10.17261/Pressacademia.2020.1215

Abstract

Purpose – A mix of legacy drug makers and small startups have stepped forward with plans to develop vaccines or treatments that target the infection caused by Covid-19. In this paper, we examine whether COVID-19 related news triggers investment to pharma and biotech companies.
Methodology We investigate the news impact of the pandemic on global pharmaceuticals and biotechnology industry stock returns by utilizing EGARCH models and News Impact Curves
Findings- Due to our results, there are outstanding companies such as Gilead with its remdesivir which was originally developed to treat the Ebola virus and Dynavax partnering with vaccine developer companies to use its technology.
Conclusion- The asymmetry in the NICs for the favor of good news suggests that companies like Gilead and Dynavax are priced by the market with an expectation to find the cure or play an important part in this process.

References

  • Cappiello, L., Engle, Sheppard, K., (2006), Asymmetric Dynamics in the Correlations of Global Equity and Bond Returns, Journal of Financial Econometrics, Vol. 4, No. 4, pp. 537–572
  • Chen, C. D., Chen, C. C., Tang, W. W., and Huang, B. Y. (2009). The positive and negative impacts of the SARS outbreak: A case of the Taiwan industries. The Journal of Developing Areas, 281-293.
  • Chen, X., Ghysels, E., (2010), News-Good or Bad-and Its Impact on Volatility Predictions over Multiple Horizons, The Society for Financial Studies, Oxford University Press.
  • Chen, M. P., Lee, C. C., Lin, Y. H., & Chen, W. Y. (2018). Did the SARS epidemic weaken the integration of Asian stock markets? Evidence from smooth time-varying cointegration analysis. Economic research-Ekonomska istraživanja, 31(1), 908-926.
  • Chen, M. H., Jang, S. S., and Kim, W. G. (2007). The impact of the SARS outbreak on Taiwanese hotel stock performance: an event-study approach. International Journal of Hospitality Management, 26(1), 200-212.
  • Donadelli, M., Kızys, R., & Rıedel, M. Globally (2015). Dangerous Diseases, Sentiment and Pharmaceutical Stock Prices. http://sfm.finance.nsysu.edu.tw/php/Papers/CompletePaper/038-1674094255.pdf
  • Donadelli, M., Kizys, R., & Riedel, M. (2017). Dangerous infectious diseases: Bad news for Main Street, good news for Wall Street?. Journal of Financial Markets, 35, 84-103.
  • Keogh-Brown, M. R., Smith, R. D., Edmunds, J. W., and Beutels, P. (2010). The macroeconomic impact of pandemic influenza: estimates from models of the United Kingdom, France, Belgium and The Netherlands. The European Journal of Health Economics, 11(6), 543-554.
  • McKibbin, W. J., and Fernando, R. (2020). The global macroeconomic impacts of COVID-19: Seven scenarios
  • Morales, L., and Andreosso-O'Callaghan, B. (2020). Covid19: Global Stock Markets “Black Swan”. Critical Letters in Economics & Finance, 1(1), 1
  • Nelson, B., D, (1991), Conditional Heteroskedasticity in Asset Returns: A New Approach, Econometrica, Vol. 59, No. 2., pp. 347-370
  • Nippani, S., & Washer, K. M. (2004). SARS: a non-event for affected countries’ stock markets?. Applied Financial Economics, 14(15), 1105-1110.
  • Sherman IW. Dünyamızı Değiştiren On İki Hastalık. (Çev:Emel Tümbay, Mine Arığ Küçüker). Türkiye İş Bankası Yayınları. İstanbul, 2016.
  • Solarin, S. A. (2015). September 11 attacks, H1N1 influenza, global financial crisis and tourist arrivals in Sarawak. Anatolia, 26(2), 298-300.
  • Tiryaki, H.N., Ekinci, A., (2015). "Finansal bulaşıcılık çerçevesinde küresel kriz ve Türkiye'ye etkileri", Sakarya İktisat Dergisi, Cilt.4, Sayı:1, 1-30
  • Verikios, G., McCaw, J. M., McVernon, J., and Harris, A. H. (2012). H1N1 influenza and the Australian macroeconomy. Journal of the Asia Pacific Economy, 17(1), 22-51.
  • Wang, Y. H., Yang, F. J., and Chen, L. J. (2013). An investor's perspective on infectious diseases and their influence on market behavior. Journal of Business Economics and Management, 14(sup1), S112-S127.
  • Worldometers, URL: https://www.worldometers.info/coronavirus (2020)
  • Zeren, F., and Hızarcı, A. The Impact Of Covıd-19 Coronavırus On Stock Markets: Evıdence From Selected Countrıes. Muhasebe ve Finans İncelemeleri Dergisi, 3(1), 78-84
There are 19 citations in total.

Details

Primary Language English
Subjects Finance, Business Administration
Journal Section Articles
Authors

Caner Ozdurak This is me 0000-0003-0793-7480

Gulsah Alcan This is me 0000-0002-9397-1361

Serap Dursun Guvenbas 0000-0001-8683-0854

Publication Date June 30, 2020
Published in Issue Year 2020 Volume: 9 Issue: 2

Cite

APA Ozdurak, C., Alcan, G., & Guvenbas, S. D. (2020). THE IMPACT OF COVID-19 TO GLOBAL PHARMACEUTICALS AND BIOTECHNOLOGY COMPANY STOCKS RETURNS. Journal of Business Economics and Finance, 9(2), 68-79. https://doi.org/10.17261/Pressacademia.2020.1215

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