An event study on the effect of the COVID-19 pandemic on stock price of publicly listed companies in the ASEAN-5

• Main Authors: Jesswani, Jasper Salvio, Kho, Lance Nitzcel Padilla, Lino, Nica Franze Tan, Mejos, Julian Franco Balcita
• Format: text
• Language: English
• Published: Animo Repository 2022
• Subjects: Stocks—Prices—Southeast Asia; COVID-19 Pandemic, 2020- —Influence; Accounting
• Online Access: https://animorepository.dlsu.edu.ph/etdb_acc/40; https://animorepository.dlsu.edu.ph/cgi/viewcontent.cgi?article=1078&context=etdb_acc
• Institution: De La Salle University

With the rapid spread of COVID-19 all over the world since 2019, various health and travel responses from governments and organizations have been conducted to mitigate its impact. Due to the uncertainty and fear the pandemic had caused, Ozili and Arun (2020) estimated that the global stock market had incurred an estimated loss of $6 trillion. Two significant responses enacted were the development and eventual implementation of the vaccine and the easing of international travel restrictions. Through an event study, this research aims to determine the effect, difference of means, and interactions of the Cumulative Average Abnormal Returns (CAARs) of the ASEAN-5 countries and the 11 GICS sectors on two events: (1) the first day of vaccine rollout and (2) the easing of international travel restrictions. A t-test and a one-way analysis of variance were conducted to analyze the data. These address the ten hypotheses of the study covering significant effects, differences of means, and interactions. As per the t-test, the ASEAN-5 countries and the 11 GICS sectors all had at least one significant day throughout the two events. Furthermore, as per the results of the one-way ANOVA, both events had significantly different means and interactions. These findings reject all of the null hypotheses that the researchers proposed. With this, the results of this study could be beneficial to Investors and Corporations, Governments, and the Academe in making better and more rational decisions and improving on existing research.