Open Access Subscription Access
Open Access Subscription Access
The Effect of COVID-19 on Stock Prices of the Biotech Sector in Taiwan ROC
This study discusses the impact of COVID-19 on the biotech industry vs. TSEC Taiwan 50 Components stocks. We found that the price of stocks in the biotech sector in Taiwan increased due to the COVID-19 pandemic. The financial leverage ratio did not significantly affect the stock price of biotech companies during the COVID-19 pandemic. The number of confirmed diagnosed cases in Taiwan decreases the stock price of biotech companies, for high ROA. In contrast, the number of confirmed diagnosed cases in Taiwan increases the stock price of biotech companies, for high ROE. Investors have more confidence in the biotech firms with shareholder returns during the COVID-19 pandemic.
COVID-19, ROA, ROE, Biotech.
- Corbet, S., Hou, Y. G., Hu, Y., Oxley, L., & Xu, D. (2021). Pandemic-related financial market volatility spillovers: Evidence from the Chinese COVID-19 epicentre. International Review of Economics & Finance, 71, 55-81.
- Ding, W., Levine, R., Lin, C., & Xie, W. (2021). Corporate immunity to the COVID-19 pandemic. Journal of Financial Economics, 141(2), 802-830.
- Höhler, J., & Lansink, A. O. (2021). Measuring the impact of COVID-19 on stock prices and profits in the food supply chain. Agribusiness, 37(1), 171-186.
- Hong, H., Bian, Z., & Lee, C. C. (2021). COVID-19 and instability of stock market performance: Evidence from the US. Financial Innovation, 7(1), 1-18.
- Hsu, Y. C., Hsu, C. Y., & Kang, H. Y. (2020). Taiwan stock exchange weighted index prediction models before and after coronavirus disease 2019 (COVID-19). Journal of Innovation and Business Management (Taiwan), 9(2), 39-64.
- Izzeldin, M., Muradoğlu, Y. G., Pappas, V., & Sivaprasad, S. (2021). The impact of COVID-19 on G7 stock markets volatility: Evidence from a ST-HAR model. International Review of Financial Analysis, 74, 101671.
- Lai, Y. C., Hu, M. C., & Wang, C. A. (2021). The study of the COVD-19 on electronical and financial stock price in Taiwan. Journal of Global Management and Economics (Taiwan), 17(1), 59-68.
- Lai, Y. C., & Masters, S. (2005). The effects of mandatory maternity and pregnancy benefits on women’s wages and employment in Taiwan, 1984-1996. Industrial and Labor Relations Review, 58(2), 274-281.
- Lai, Y. C. (2010). The effect of migrant workers on labor in the manufacturing industry in Taiwan. Journal of International and Global Economic Studies, 3(2), 39-52.
- Lai, Y. C., & Sarkar, S. (2013). Labour market effects of work-sharing arrangements in Taiwan, ROC. International Journal of Manpower, 34(6), 635-657.
- Lai, Y. C., & Sarkar, S. (2016). Effects of paid parental leave allowance on labour market outcomes in Taiwan. International Journal of Information and Management Science, 27(4), 379-403.
- Lai, Y. C., & Sarkar, S. (2022). The role of labour unrest and skilled labour on outward foreign direct investment in Taiwan, Republic of China, ROC. The Economic and Labour Relations Review, 10353046211066932 (Forthcoming).
- Lai, Y. C., & Sarkar, S. (2017). Gender equality legislation and foreign direct investment. International Journal of Manpower, 38(2), 160-179.
- Lai, Y. C. (2019). Effect of participation of foreign migrant workers in labour market on native workers: Evidence based on change noticed in college premium in Taiwan ROC. Global Economic Review, 48(1), 88-110.
- Lai, Y. C. (2021). Wage premium via education & gender difference through labor disputes on OFDI in Taiwan ROC. Indian Journal of Industrial Relations, 56(4), 609-624.
- Liu, Z., Huynh, T. L. D., & Dai, P. F. (2021). The impact of COVID-19 on the stock market crash risk in China. Research in International Business and Finance, 57, 101419.
- Liu, L., Wang, E. Z., & Lee, C. C. (2020). Impact of the COVID-19 pandemic on the crude oil and stock markets in the US: A time-varying analysis. Energy Research Letters, 1(1), 13154.
- Mazur, M., Dang, M., & Vega, M. (2021). COVID-19 and the March 2020 stock market crash: Evidence from S&P1500. Finance Research Letters, 38, 101690.
- Narayan, P. K., Devpura, N., & Wang, H. (2020). Japanese currency and stock market - What happened during the COVID-19 pandemic? Economic Analysis and Policy, 68, 191-198.
- Ramelli, S., & Wagner, A. (2020). What the stock market tells us about the consequences of COVID-19. In R. Baldwin & B. W. di Mauro, Mitigating the COVID Economic Crisis: Act Fast and Do Whatever, 63-219. UK, London: CEPR Press
Abstract Views: 37
PDF Views: 0