Investor’s behaviour to COVID-19 vaccine: an event study on health and pharmaceutical sector in India
International Journal of Pharmaceutical and Healthcare Marketing
ISSN: 1750-6123
Article publication date: 27 July 2023
Issue publication date: 16 November 2023
Abstract
Purpose
The devastating acute COVID-19 epidemic crippled the global economy in 2020. Within a month of the COVID-19 epidemic, every industry saw its stock prices plummet the most. Ending the COVID-19 pandemic will need equitable access to safe and effective vaccinations. This study aims to look at the link between COVID-19 vaccination and the stock markets for health and pharmaceutical sector.
Design/methodology/approach
The researchers used a mean-adjusted return model and event research approach to figure out how the first dose of the COVID-19 vaccine affects health and pharmaceutical sector stock market returns.
Findings
The evidence-based outcome indicates that immunisation announcement affects health and pharmaceutical company returns. Furthermore, the study concludes that the health and pharmaceutical industry is inefficient for a short period of time, but after 41 days, the sector absorbs the noisy information.
Originality/value
Since the outbreak, the development of COVID-19 vaccines has been a key focus of shareholders and investors. This study is unique in that it investigates the effect of the first dosage of SARS-CoV-2 vaccination on equity returns in the health and pharmaceutical industries, and it is likely to make a substantial contribution to the capital market literature on event methodology.
Keywords
Acknowledgements
The author is grateful to Dr Avinandan Mukherjee (the Editor) and the anonymous reviewers for their constructive and insightful comments on this paper. The author particularly appreciates Dr Mukherjee’s skilful editorship of this paper, which has helped to improve the clarity and coherence of the text.
Funding: The authors received no financial support for the research, authorship and/or publication of this paper.
Declaration of conflicting interests: The authors declared no potential conflicts of interest with respect to the research, authorship and/or publication of this paper.
Citation
Gupta, H. and Gupta, A. (2023), "Investor’s behaviour to COVID-19 vaccine: an event study on health and pharmaceutical sector in India", International Journal of Pharmaceutical and Healthcare Marketing, Vol. 17 No. 4, pp. 429-449. https://doi.org/10.1108/IJPHM-05-2022-0053
Publisher
:Emerald Publishing Limited
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