How does China's stock market react to supply chain disruptions from COVID-19?

Zhixuan Wang, Yanli Dong and Ailan Liu

International Review of Financial Analysis, 2022, vol. 82, issue C

Abstract: As a once-in-a-century global pandemic, COVID-19 severely hit the global economy and disrupted the worldwide supply chain. Based on 505 Chinese firms, we use the event study method to explore the effect of COVID-19 on the financial performance of firms. The findings show that COVID-19 has an immediate impact on Chinese firms. Hubei firms experience stronger effects than non-Hubei firms. Supply chain disruptions effects from COVID-19 are observed. Transportation industry is hit more severely than retail industry. Insurance companies experience a strong adverse effect. On the other hand, both medical and competitor firms experience significantly positive spillover effects.

Keywords: COVID-19; Abnormal returns; Event study; Supply chain disruption (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:82:y:2022:i:c:s1057521922001326

DOI: 10.1016/j.irfa.2022.102168

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