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The link Between Stock Exchange Sectors and Indices: Implications During the COVID-19 Pandemic
The paper investigates the impact of the COVID-19 pandemic, using the event study approach for the Bucharest Stock Exchange, by which Bucharest Stock Indices and listed firms grouped by sectors were analyzed. The paper uses three important event days, 20 January 2020, 11 March 2020, and 15 March 202...
Autores principales: | , , , |
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Formato: | Online Artículo Texto |
Lenguaje: | English |
Publicado: |
SAGE Publications
2022
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Materias: | |
Acceso en línea: | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9773000/ https://www.ncbi.nlm.nih.gov/pubmed/36575746 http://dx.doi.org/10.1177/21582440221142756 |
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author | Boldeanu, Florin-Teodor Litră, Adriana Veronica Clemente-Almendros, José Antonio Tache, Ileana |
author_facet | Boldeanu, Florin-Teodor Litră, Adriana Veronica Clemente-Almendros, José Antonio Tache, Ileana |
author_sort | Boldeanu, Florin-Teodor |
collection | PubMed |
description | The paper investigates the impact of the COVID-19 pandemic, using the event study approach for the Bucharest Stock Exchange, by which Bucharest Stock Indices and listed firms grouped by sectors were analyzed. The paper uses three important event days, 20 January 2020, 11 March 2020, and 15 March 2020. The findings demonstrate that initially investors were not concerned about the pandemic, showing that they did not realize the extent of globalization and transmission of events on financial markets. Both after 11 March and after 15 March 2020, stock indices have declined, investors becoming worried about the prospects of their dividends and the stock liquidity. The most affected sectors were those related to metallurgical industry, IT&C. After the lockdown, there was a reversal for some sectors like pharmaceutical and biotechnology, electricity production, transportation and distribution, and IT&C. Understanding the intensity and direction of the link between some sectors and indices may influence investment strategies and help in hedging, especially in times of pandemics. |
format | Online Article Text |
id | pubmed-9773000 |
institution | National Center for Biotechnology Information |
language | English |
publishDate | 2022 |
publisher | SAGE Publications |
record_format | MEDLINE/PubMed |
spelling | pubmed-97730002022-12-23 The link Between Stock Exchange Sectors and Indices: Implications During the COVID-19 Pandemic Boldeanu, Florin-Teodor Litră, Adriana Veronica Clemente-Almendros, José Antonio Tache, Ileana Sage Open Article The paper investigates the impact of the COVID-19 pandemic, using the event study approach for the Bucharest Stock Exchange, by which Bucharest Stock Indices and listed firms grouped by sectors were analyzed. The paper uses three important event days, 20 January 2020, 11 March 2020, and 15 March 2020. The findings demonstrate that initially investors were not concerned about the pandemic, showing that they did not realize the extent of globalization and transmission of events on financial markets. Both after 11 March and after 15 March 2020, stock indices have declined, investors becoming worried about the prospects of their dividends and the stock liquidity. The most affected sectors were those related to metallurgical industry, IT&C. After the lockdown, there was a reversal for some sectors like pharmaceutical and biotechnology, electricity production, transportation and distribution, and IT&C. Understanding the intensity and direction of the link between some sectors and indices may influence investment strategies and help in hedging, especially in times of pandemics. SAGE Publications 2022-12-20 /pmc/articles/PMC9773000/ /pubmed/36575746 http://dx.doi.org/10.1177/21582440221142756 Text en © The Author(s) 2022 https://creativecommons.org/licenses/by/4.0/This article is distributed under the terms of the Creative Commons Attribution 4.0 License (https://creativecommons.org/licenses/by/4.0/) which permits any use, reproduction and distribution of the work without further permission provided the original work is attributed as specified on the SAGE and Open Access pages (https://us.sagepub.com/en-us/nam/open-access-at-sage). |
spellingShingle | Article Boldeanu, Florin-Teodor Litră, Adriana Veronica Clemente-Almendros, José Antonio Tache, Ileana The link Between Stock Exchange Sectors and Indices: Implications During the COVID-19 Pandemic |
title | The link Between Stock Exchange Sectors and Indices: Implications During the COVID-19 Pandemic |
title_full | The link Between Stock Exchange Sectors and Indices: Implications During the COVID-19 Pandemic |
title_fullStr | The link Between Stock Exchange Sectors and Indices: Implications During the COVID-19 Pandemic |
title_full_unstemmed | The link Between Stock Exchange Sectors and Indices: Implications During the COVID-19 Pandemic |
title_short | The link Between Stock Exchange Sectors and Indices: Implications During the COVID-19 Pandemic |
title_sort | link between stock exchange sectors and indices: implications during the covid-19 pandemic |
topic | Article |
url | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9773000/ https://www.ncbi.nlm.nih.gov/pubmed/36575746 http://dx.doi.org/10.1177/21582440221142756 |
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