 The positive and negative impacts of the sars outbreak:a case of the Taiwan industriesChun-Da Chen,
Chin-Chun Chen,
Wan-Wei Tang and
Bor-Yi Huang ()
Journal of Developing Areas, 2009, vol. 43, issue 1, 281-293 Abstract: In this paper we employ an event study approach with GARCH process to uncover whether there were positive impacts on the Taiwan’s stock market during the SARS outbreak period in 2003. The empirical results indicate that the SARS crisis did bring negative impacts on tourism and the wholesale and retail sectors. This result has been confirmed by many previous studies, but it is most important that the biotechnology sector saw positive shocks from the impacts of the SARS crisis. It is clear that the value effect of SARS outbreak seems to be asymmetrical within our sample firms. Therefore, fund managers and investors at that time were able to buy and hold biotechnology stocks and rearrange their portfolios to obtain investment profits, maintain portfolio returns, or lower investment risks during the SARS outbreak period in Taiwan. The government of Taiwan should support the developments of each industry sufficiently, and then these industries could help to protect the nation’s economy and residents’ health against any possible impact of disease, such as SARS. Keywords: Severe Acute Respiratory Syndrome; Taiwan industries; Stock return; Event study (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:jda:journl:vol.43:year:2009:issue1:pp:281-293 Access Statistics for this article More articles in Journal of Developing Areas from Tennessee State University, College of Business Contact information at EDIRC. |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.