COVID-19 and the march 2020 stock market crash. Evidence from S&P1500

This paper investigates the US stock market performance during the crash of March 2020 triggered by COVID-19. We find that natural gas, food, healthcare, and software stocks earn high positive returns, whereas equity values in petroleum, real estate, entertainment, and hospitality sectors fall drama...

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Detalles Bibliográficos
Autores principales: Mazur, Mieszko, Dang, Man, Vega, Miguel
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Elsevier Inc. 2021
Materias:
Article
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7343658/
https://www.ncbi.nlm.nih.gov/pubmed/32837377
http://dx.doi.org/10.1016/j.frl.2020.101690
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author Mazur, Mieszko
Dang, Man
Vega, Miguel
author_facet Mazur, Mieszko
Dang, Man
Vega, Miguel
author_sort Mazur, Mieszko
collection PubMed
description This paper investigates the US stock market performance during the crash of March 2020 triggered by COVID-19. We find that natural gas, food, healthcare, and software stocks earn high positive returns, whereas equity values in petroleum, real estate, entertainment, and hospitality sectors fall dramatically. Moreover, loser stocks exhibit extreme asymmetric volatility that correlates negatively with stock returns. Firms react in a variety of different ways to the COVID-19 revenue shock. The analysis of the 8K and DEF14A filings of poorest performers reveals departures of senior executives, remuneration cuts, and (most surprisingly) newly approved cash bonuses and salary increases.
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spelling pubmed-73436582020-07-09 COVID-19 and the march 2020 stock market crash. Evidence from S&P1500 Mazur, Mieszko Dang, Man Vega, Miguel Financ Res Lett Article This paper investigates the US stock market performance during the crash of March 2020 triggered by COVID-19. We find that natural gas, food, healthcare, and software stocks earn high positive returns, whereas equity values in petroleum, real estate, entertainment, and hospitality sectors fall dramatically. Moreover, loser stocks exhibit extreme asymmetric volatility that correlates negatively with stock returns. Firms react in a variety of different ways to the COVID-19 revenue shock. The analysis of the 8K and DEF14A filings of poorest performers reveals departures of senior executives, remuneration cuts, and (most surprisingly) newly approved cash bonuses and salary increases. Elsevier Inc. 2021-01 2020-07-09 /pmc/articles/PMC7343658/ /pubmed/32837377 http://dx.doi.org/10.1016/j.frl.2020.101690 Text en © 2020 Elsevier Inc. All rights reserved. Since January 2020 Elsevier has created a COVID-19 resource centre with free information in English and Mandarin on the novel coronavirus COVID-19. The COVID-19 resource centre is hosted on Elsevier Connect, the company's public news and information website. Elsevier hereby grants permission to make all its COVID-19-related research that is available on the COVID-19 resource centre - including this research content - immediately available in PubMed Central and other publicly funded repositories, such as the WHO COVID database with rights for unrestricted research re-use and analyses in any form or by any means with acknowledgement of the original source. These permissions are granted for free by Elsevier for as long as the COVID-19 resource centre remains active.
spellingShingle Article
Mazur, Mieszko
Dang, Man
Vega, Miguel
COVID-19 and the march 2020 stock market crash. Evidence from S&P1500
title COVID-19 and the march 2020 stock market crash. Evidence from S&P1500
title_full COVID-19 and the march 2020 stock market crash. Evidence from S&P1500
title_fullStr COVID-19 and the march 2020 stock market crash. Evidence from S&P1500
title_full_unstemmed COVID-19 and the march 2020 stock market crash. Evidence from S&P1500
title_short COVID-19 and the march 2020 stock market crash. Evidence from S&P1500
title_sort covid-19 and the march 2020 stock market crash. evidence from s&p1500
topic Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7343658/
https://www.ncbi.nlm.nih.gov/pubmed/32837377
http://dx.doi.org/10.1016/j.frl.2020.101690
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