Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)

Research on the Influence of the COVID-19 Pandemic on Pharmaceutical Stock Markets in China —Based on Granger Causality Test

Authors
Yuhan Chen1, *
1University of British Columbia, Sauder school of business, Vancouver, British Columbia, Canada. V6T 1Z4
*Corresponding author: siac294@gmail.com
Corresponding Author
Yuhan Chen
Available Online 26 March 2022.
DOI
https://doi.org/10.2991/aebmr.k.220307.249How to use a DOI?
Keywords
COVID-19; pharmaceutical industry; stock market; positive impact
Abstract

The World Health Organization (WHO) declared the coronavirus disease, which broke out in early 2020, a “public health emergency,” triggering significant problems to the Chinese economy. The pandemic has had a massive effect on the majority of industries. This article will apply the Event Analysis Approach based on Granger Causality Test to examine the epidemic’s influence on the stock returns of public companies in China’s pharmaceutical industry by using the Shenwan Pharmaceutical Biological Index as an example. The Granger causality test is a statistical hypothesis test used to determine if one time series can be used to predict another. If the probability value is less than any α level, then the hypothesis would be rejected at that level. The research findings reveal that the COVID-19 pandemic has a substantial positive impact on the profitability of China’s pharmaceutical sector, although the influence is only temporary. The importance of studying the impact of epidemics on capital markets is that the findings can provide a theoretical basis and practical recommendations for regulators and investors to make decisions during emergencies.

Copyright
© 2022 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

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Volume Title
Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
26 March 2022
ISBN
978-94-6239-554-1
ISSN
2352-5428
DOI
https://doi.org/10.2991/aebmr.k.220307.249How to use a DOI?
Copyright
© 2022 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

Cite this article

TY  - CONF
AU  - Yuhan Chen
PY  - 2022
DA  - 2022/03/26
TI  - Research on the Influence of the COVID-19 Pandemic on Pharmaceutical Stock Markets in China —Based on Granger Causality Test
BT  - Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)
PB  - Atlantis Press
SP  - 1525
EP  - 1529
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220307.249
DO  - https://doi.org/10.2991/aebmr.k.220307.249
ID  - Chen2022
ER  -