Stock price reaction to appointment of a chief health officer during COVID-19

Riste Ichev

Journal of Behavioral and Experimental Finance, 2021, vol. 31, issue C

Abstract: This study examines how appointing a chief health officer (CHO) at the corporate-board level during the COVID-19 outbreak affects the stock returns of US firms. As the COVID-19 progressed, the negative abnormal return (CAR) is −7.5%. In contrast, shares of firms that had appointed a CHO before or during the window surrounding the date of the first reported COVID-19 case (the WHO declaration) exhibited positive CAR of ＋6.29% (＋0.136%). CARs surrounding the exact CHO appointment date once the COVID-19 had already broken out the effect was even stronger, ＋6.91%. Size, leverage, growth, and R&D intensity influence significantly returns during the outbreak.

Keywords: Chief health officer; COVID-19; Investor sentiment; Stock markets; Corporate board (search for similar items in EconPapers)
JEL-codes: G14 G15 G4 I18 M12 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S221463502100085X

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:beexfi:v:31:y:2021:i:c:s221463502100085x

DOI: 10.1016/j.jbef.2021.100541

Access Statistics for this article

Journal of Behavioral and Experimental Finance is currently edited by Michael Dowling and Jürgen Huber

More articles in Journal of Behavioral and Experimental Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().