Covid-19 vaccines and investment performance: Evidence from equity funds in European Union

Nawazish Mirza, Muhammad Umar and Jasmina Mangafic

Finance Research Letters, 2023, vol. 53, issue C

Abstract: In this paper, we analyze the impact of the marketing authorization of EMA-approved vaccines on the returns of equity funds in the EU. Using the event study methodology, we report that the introduction of all vaccines had a positive impact on the funds' returns. Higher abnormal returns were associated with the earlier vaccines, indicating the first-mover advantage and the abnormal returns were persistent across several event windows. The findings imply that equity markets welcomed the vaccine administration as an important pharmaceutical intervention to support the quasi-revival of business activities. Consequently, there was a significant uplift in the economic bottom line.

Keywords: Public health; Equity returns; Mutual funds; Covid-19 vaccines (search for similar items in EconPapers)
JEL-codes: G12 G15 H51 I15 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:53:y:2023:i:c:s1544612323000247

DOI: 10.1016/j.frl.2023.103650

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