Studying Wuhan Lockdown’s Impact on Airline, Vaccine and Mask Industry in The Chinese Stock Market Through Empirical Models

DOI

10.2991/978-94-6463-098-5_194How to use a DOI?

Keywords

Covid-19; Airline Industry; Masks Industry; Pharmaceutical Industry; Event Study

Abstract

In this paper, our group shows the effect of Covid-19 on the Chinese stock market as well as stock prices of the airline, mask, and pharmaceutical industries. We targeted three companies from each industry. For airlines: Air China (601111), China Eastern airline (600115), China Southern Airlines (600029). For masks, Mask: Tianjin Economic-technological Development Area Co Ltd (000652), Shanghai Dragon Corp (600630), Xinlong Holding Group Co Ltd (000955) Medical: Shenzhen Kangtai Biological Products (300601), Chongqing Zhifei Bio Products (300122), Walvax BioTech (300142). Through the Event Study Methodology, we first compared the actual return with the expected return on a signal stock. We derived our expected return by a linear regression model, then subtracted the expected return from the actual return in order to find the abnormal return. Next, we deduced a confidence interval to test the significance of the abnormal return. Our null hypothesis is Covid-19 has no impact on a certain industry. If the abnormal return exceeds the confidence interval, there is sufficient evidence to support that Covid-19 has a significant impact on the industry. If the abnormal return does not exceed the confidence interval, the null hypothesis is accepted.

Copyright

© 2023 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Tianhao Hu
AU  - Yongyi Lin
AU  - Zian Wang
PY  - 2022
DA  - 2022/12/27
TI  - Studying Wuhan Lockdown’s Impact on Airline, Vaccine and Mask Industry in The Chinese Stock Market Through Empirical Models
BT  - Proceedings of the 2022 4th International Conference on Economic Management and Cultural Industry (ICEMCI 2022)
PB  - Atlantis Press
SP  - 1716
EP  - 1727
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-098-5_194
DO  - 10.2991/978-94-6463-098-5_194
ID  - Hu2022
ER  -