Research On The Impact Of The COVID-19 Pandemic On The Stock Returns Of My Country's Pharmaceutical Industr

With the development of economic globalization,the frequent occurrence of”black swan” events has seriously endangered economic development and social stability.The outbreak of COVID-19 in early 2020 has posed a severe challenge to the nation’s health and socio-economic development.At the same time,the trend and development of the stock market largely reflects the national economic situation of China.The occurrence of COVID-19 has brought different degrees of impact on the stock prices of various industries,disrupted the market order,and brought uncertain risks of investment to investors.Listed companies in the pharmaceutical industry are closely related to COVID-19 and are the most direct influencers of it.Therefore,the impact of the new crown epidemic on the pharmaceutical industry stock market is worthy of in-depth study.According to the development trend of the epidemic,and taking into account the opening time of my country’s stock market,this article divides the research into two parts: occurrence and development.First of all,in the stage of the outbreak of the epidemic,the event analysis method is used to calculate the cumulative abnormal yield of the overall pharmaceutical industry and sub-sectors of China,then test whether the listed companies are affected by the announcement of COVID-19 and the significant extent of the impact.Then this article analyses the returns of A-shares in the pharmaceutical industry in Shanghai and Shenzhen during the development phase of the epidemic after the opening of the Chinese New Year(3February 2020).Selecting the growth rate of confirmed cases,circulating market value,book-to-market value ratio,turnover rate and exchange rate indicators,using panel data regression model to deeply study the impact of COVID-19 on the pharmaceutical industry and its sub-sectors.The results of the research are as follows:(1)In the stage of the epidemic,the urgent need for protective equipment and the expectation of drugs for the treatment of pneumonia has attracted widespread attention from investors in the pharmaceutical industry.the cumulative abnormal yield of pharmaceutical companies’ stocks has risen significantly,and different types of pharmaceutical companies have been positively affected.(2)During the epidemic development phase,the severity of the domestic epidemic has affected stock yields,with the pharmaceutical sector receiving positive news on the domestic epidemic,and stock yields increasing with the severity of the epidemic.(3)In the stage of the occurrence and development of COVID-19,there are differences in the impact of different types of pharmaceutical companies.During the outbreak stage,medical device enterprises and Chinese medicine enterprises were greatly affected by the positive impact.While during the development phase,with the long-term demand for epidemic prevention supplies and the expectations for vaccine development,medical device and chemical raw materials enterprises have been greatly affected by the positive degree.In view of this,this article proposes measures to deal with the COVID-19 from the perspectives of the government,enterprises and investors,which provides a reference for responding to similar emergencies in the future and ensuring the stability of the stock market and the high-quality development of the social economy.