The COVID-19 shock and the ownership of store Chain：Evidence from China's express delivery industry

Utilizing stock market data of express delivery companies that have been listed on the stock market of China, this paper intends to examine the two alternative store chain ownership, namely corporate–owned versus franchised, which is more resilient to external shocks. Based on the price data of 1034 trading days from December 2, 2019, to September 30, 2022, the Quandt-Andrews method is used to compare the companies of corporate-owned store chain with those of franchised store chain. The results reveal that the stock market performance of the express delivery industry underwent a huge structural change during the COVID-19 epidemic. Moreover, because of the stringent pandemic control measures, there are significant differences in structural changes between the two types of express delivery companies, corporate-owned store chain as opposed to franchised store chain. The structural changes occurred earlier for the former, which suggests that the companies of corporate-owned store chain are more resilient to recovery. This study can provide helpful insight into better risk control for companies managing retail stores and choosing “rainy day assets” portfolios for investors in times of financial uncertainty.