Early COVID-19 policy response on healthcare equity prices

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dc.contributor.authorGurrib, Ikhlaas
dc.date.accessioned2021-07-06T08:55:14Z
dc.date.available2021-07-06T08:55:14Z
dc.date.copyright© 2021
dc.date.issued2021-10-18
dc.descriptionThis article is not available at CUD collection. The version of scholarly record of this article is published in Studies in Economics and Finance (2021), available online at: https://doi.org/10.1108/SEF-02-2021-0075en_US
dc.description.abstractPurpose: This paper aims to investigate the implementation of the short selling ban policy imposed by the Italian stock exchange on health-care stock prices, as a tool to mitigate COVID-19 price effects. Important contributions are in terms of assessing the effect of the temporary short selling ban on restricted health-care stocks; the effect of COVID-19 cases and crude oil price volatility onto health-care stocks; and whether COVID-19 resulted in a change in the risk and average stock price of health-care stocks. Design/methodology/approach: The methodology involves impulse responses to capture the shock of the short selling ban onto health-care stocks, and Markov switching regimes to capture the effect of COVID-19 onto the risk and prices in the health-care industry. Daily data from 9 November 2018 till 23 December 2020 is used. Findings: Findings suggest there were significant changes in average prices in health-care technology and health-care services stocks before, during and after the short selling ban. Shocks to the number of COVID-19 cases and crude oil price volatility impacted health-care stocks but lasted only for a few days. While daily changes in the number of COVID-19 cases impacted some health-care stocks in the presence of a two-state Markov regime, insignificant coefficients and relatively low duration suggest that the short selling policy did not significantly change the average price and risk in health-care stocks to explain a two-state regime in the health-care industry. Research limitations/implications: Insignificant coefficients in a two-state Markov regime reinforce that short-selling policies have a short-lasting effect onto health-care equity prices. The findings are limited by the duration of the short selling policy, the pandemic event and the health-care industry. Originality/value: This is the first study to look at the impact of early COVID-19 and short selling ban policy on health-care stocks. © 2021, Emerald Publishing Limited.en_US
dc.identifier.citationGurrib, I. (2021). Early COVID-19 policy response on healthcare equity prices. Studies in Economics and Finance, 38(5), 987-1006. https://doi.org/10.1108/SEF-02-2021-0075en_US
dc.identifier.issn10867376
dc.identifier.urihttps://doi.org/10.1108/SEF-02-2021-0075
dc.identifier.urihttp://hdl.handle.net/20.500.12519/399
dc.language.isoenen_US
dc.publisherEmerald Group Holdings Ltd.en_US
dc.relationAuthors Affiliations : Gurrib, I., School of Graduate Studies, Faculty of Management, Canadian University Dubai, Dubai, United Arab Emirates
dc.relation.ispartofseriesStudies in Economics and Finance; Volume 38, Issue 5
dc.rightsThis article is © Emerald Publishing Limited and permission has been granted for this version to appear here (https://repository.cud.ac.ae/). Emerald does not grant permission for this article to be further copied/distributed or hosted elsewhere without the express permission from Emerald Publishing Limited.
dc.rights.holderCopyright : © 2021, Emerald Publishing Limited.
dc.subjectCOVID-19en_US
dc.subjectHealth-care stock pricesen_US
dc.subjectShort-selling banen_US
dc.titleEarly COVID-19 policy response on healthcare equity pricesen_US
dc.typeArticleen_US

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