Research On The Impact Of COVID-19 Epidemic On The Value Of Listed Companies In China’s Film And Television Industry

When culture is prosperous,the country is prosperous,and when culture is strong,the nation is strong.The cultural industry is not only related to the economic environment,but also related to the spiritual connotation of the country and the nation.After the outbreak of the new crown epidemic in 2020,it has caused a great impact on all walks of life in China,the overall index of the cultural and entertainment industry has dropped significantly,and the performance of most listed companies in the film and television industry has also suffered losses.Combined with the academic literature after 2020,more scholars have used the econometic model to examine the impact of the new crown epidemic on listed companies,but listed companies in the film and television industry have hardly been concerned.Therefore,the article will rely on the basic theory of external negative events impacting the value of listed companies,using a difference-in-difference model to calculate the impact of the new crown epidemic on the value of listed companies in the film and television industry,on the one hand,to verify whether the traditional theory can explain the impact of the new crown epidemic on listed companies in the film and television industry,on the other hand,by assessing the impact of the epidemic on the value of listed companies in the film and television industry,so as to expand the existing relevant research results.In the theoretical analysis section,the relevant concepts of enterprise value evaluation are introduced,the characteristics and value evaluation of the film and television industry are summarized and analyzed,the impact mechanism of COVID-19 on the value of listed companies in the film and television industry is expounded,and the research hypothesis of this paper is put forward.Due to the new outbreak will bring negative signals to the market,and as the film and television industry overall performance decline and further firm negative expectations,eventually have a negative impact on film and television industry listed company market value,so this paper puts forward the first research hypothesis,that means the COVID-19 has had a long-term negative impact on the value of listed companies in the film and television industry.However,the predictable negative impact of the COVID-19 pandemic on the film and television industry will also increase panic among investors and trigger more information about pessimistic expectations in the short term.Therefore,this paper puts forward the second research hypothesis that COVID-19 has a short-term negative impact on the value of listed companies in the film and television industry.In the status quo analysis section,first introduces the development of the COVID-19 pandemic,and found in 2020 film and television industry profit and loss status,cash flow and financial situation are not ideal,many film and television industry listed companies huge losses,and industry fundamentals by the bigger impact,cinema box office scale,attendance and screen number decline,the market reaction to the film and television industry is not positive.Finally,through the case of huayi brothers company for FCFF model valuation analysis,the results show that the COVID-19 in the short term will promote the theory of huayi brothers shares fell sharply,but may ease for the long time,but is still lower than the same level in 2019,to verify the outbreak of the COVID-19 has a negative impact on huayi brothers company value.In view of the theoretical analysis and status quo analysis,In this paper,4,252 A-share listed companies were selected in the empirical study,Using the monthly panel data from January 2019-December 2021,Using the difference-in-difference model,COVID-19 can lead to the decline in CAR of listed companies in the film and television industry on average to 0.945%,The average PE declined of 7.927,The average PB rose by 0.796.This conclusion is consistent with the research hypothesis 1,and the rise of PB can be explained by the inflated valuation phenomenon caused by the decline in the net assets of many listed companies in the film and television industry.But in the short term of three months of the COVID-19,only caused the film and television industry CAR significant and steady negative impact,influence coefficient of-2.127,did not get new crown outbreak of PE and PB’s short-term steady influence,after the COVID-19 in the short term effect is not significant and not robust,presents a higher investor sentiment.In general,COVID-19 has indeed caused the trend of "falling first,and then rising" in the value of listed companies in the film and television industry in the short term,but in the long term,the market returns to rationality,and the value of the company has also declined sharply.Finally,according to the empirical conclusion,this paper puts forward the corresponding policy suggestions.Firstly,the government should implement the promotion policy of film and television industry.Secondly,to promote the transformation and upgrading of film supply mode.Thirdly,to guide the rationalization of market investment.