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The impact of COVID-19 pandemic on abnormal returns of insurance firms: a cross-country evidence.
- Source :
- Applied Economics; Jul2021, Vol. 53 Issue 31, p3658-3678, 21p, 6 Charts, 8 Graphs, 1 Map
- Publication Year :
- 2021
-
Abstract
- This research investigates the abnormal returns of 958 insurance companies from Australia, Canada, Germany, USA, UK, Brazil, India, and Indonesia under the COVID-19 scenario. This study deploys the event study methodology to analyse the effects of COVID-19 on stock returns both in the short and long terms. Results reveal that, overall, COVID-19 negatively affected the stock returns, particularly in the case of insurance firms operating in developing countries. This research also explores firm-specific determinants distinguishing the most affected insurance firms. It is found that firm size, systematic risk, price-earnings ratio, profitability, and dividend yield affect the intensity of abnormal returns in response to COVID-19 but in different event windows. The investors and policymakers should consider these factors in connection with the risk mitigating strategies. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 00036846
- Volume :
- 53
- Issue :
- 31
- Database :
- Complementary Index
- Journal :
- Applied Economics
- Publication Type :
- Academic Journal
- Accession number :
- 151136437
- Full Text :
- https://doi.org/10.1080/00036846.2021.1884839