An Empirical Study of COVID-19 Vaccine Announcement of Selected Companies by Using Event Study Methodology
Purpose: How did health crises convert to a global financial problem? In this study we focus to examine the effect of COVID-19 vaccine announcement for Pfizer Company and the other companies. Design/Methodology/Approach: This study finds the positive abnormal return and cumulative abnormal return impacts for the COVID-19 vaccine announcement for Pfizer Company. For our data sample this study used the daily-based data of Pfizer, AstraZeneca, Moderna and Biontech Johnson & Johnson . Findings: This study focuses on the period from January 2019 to December 2020. This study used the event study methodology for the empirical analysis. This study examines the impact of covid-19 vaccine announcement for companies are positive abnormal return and statistical insignificant Cumulative abnormal return impacts for covid-19 vaccine announcement. Practical implications: The impact of covid-19 vaccine announcement for companies were positive abnormal return and statistical insignificant Cumulative abnormal return impacts for covid-19 vaccine announcement based on both logarithmic return and discrete return methods. This result can be used for better execution of the vaccination programs. Originality value: There is no similar study in the literature trying to examine the effect of COVID-19 vaccine among the pharmaceutical companies.