Return to search

Stock Returns by Sector and Industries in a Year into the COVID-19 Pandemic

In the COVID-19 stock market industries reacted and were affected in different ways. This paper will use Standard Industrial Classification (SIC) codes to look at how sectors and selected industries fared after a whole year in a pandemic. This will be accomplished by comparing 2019 stock returns to 2020 stock returns with a t-test and estimating the effect of COVID-19 positive case and death increases using a pooled OLS regression. All SIC sectors A-J were analyzed as well as 18 selected industries such as food stores, real estate, oil and gas extraction, health services, and communications. Results show a significant variation in the monthly returns of 2019 and 2020. Regression results show that there is a small but positive correlation of sector and industry returns to COVID-19 positive case and death increases. This contrary result can confirm the short influential window of COVID-19 outcomes on the stock market as shown in related research. This also confirms that regardless of the continued escalation of the pandemic, the stock market follows sentiment, not substance. This paper will contribute to the existing literature by conducting a yearlong event study of the United States' sectors and industries during the COVID-19 pandemic.

Identiferoai:union.ndltd.org:ucf.edu/oai:stars.library.ucf.edu:honorstheses-2126
Date01 January 2021
CreatorsCasas, Simon Alvin A
PublisherSTARS
Source SetsUniversity of Central Florida
LanguageEnglish
Detected LanguageEnglish
Typetext
Formatapplication/pdf
SourceHonors Undergraduate Theses

Page generated in 0.0022 seconds