The press releases of the World Health Organization regarding pandemics and their impact on pharmaceutical companies listed in the Standard & Poor's 500 index
DOI:
https://doi.org/10.18046/j.estger.2021.158.4162Keywords:
COVID-19, pharmaceutical, efficient marketAbstract
The present work aims to determine the financial impact on the stock returns of 60 pharmaceutical companies listed in the Standard & Poor's 500 index in the period 2003-2020, in response to the press releases of the World Health Organization, regarding pandemics of the severe acute respiratory syndrome, influenza H1N1, and COVID-19 (SARS-CoV-2) pandemics. To test the hypothesis that these press releases affect the stock prices, the events study methodology was used, and quantitative research with a correlational scope was applied. The main findings confirm that the World Health Organization reports regarding pandemics have measurable impacts on the stock market performance of the pharmaceutical companies members of the S&P 500 index.
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