The Impact And Influence Of COVID-19 On Listed Companies In The Medical Industry

At the end of 2019,COVID-19,a major public danger of global concern,began to spread globally,causing many different levels of impact.This economic crisis has had a huge impact on the world economy,the "economic barometer" index has also been affected,among which,the stock market has been affected most significantly.With the arrival of 2023,the global COVID-19 economic crisis has brought great changes to most industries,including the broad market index,traditional manufacturing and some other industries,where stock prices have dropped significantly.However,surprisingly,the stock of the medical industry has still rebounded.This shows that international investors are actively investing in this sector.This paper takes this as a starting point to participate in the relevant research on the impact of the epidemic.According to the public documents,this paper divides the development of the epidemic into four stages,namely the embryonic stage,the transitional stage,the outbreak stage and the decisive stage.From three dimensions,such as the overall characteristics,short-term impact and medium-and long-term impact,it subdivides into three sub-sectors,such as healthcare,medical devices and pharmaceutical business,to explore the impact of the pneumonia epidemic on the listed companies in the medical sector.The findings are as follows: First,after the outbreak of the epidemic,the share price of the medical sector experienced a significant rise in the short term.After the outbreak of the epidemic,the share price of the medical sector showed a fluctuating feature of rising in different subperiods.Second,the empirical analysis based on the event study method shows that in the short term,the three sub-sectors of medical devices,pharmaceutical business and medical care have been impacted by the demand growth caused by the novel coronavirus epidemic,and have obtained significantly positive excess returns,among which the medical devices sub-sector has been the most impacted and has the most excess returns.Thirdly,from a horizontal comparison,the profit share of the medical device sub-sector is the largest.Although the medical care and pharmaceutical business industry has also increased,its trend and amplitude are not as the medical device industry.From the perspective of vertical comparison,during the transition period and outbreak period,the three sub-sectors of medical device,pharmaceutical business and healthcare industry showed great fluctuations and a positive growth trend.Based on the overall characteristics and individual stock characteristics of the impact of the epidemic on the medical sector,this paper uses the event analysis method to divide four time periods,and selects data from three sub-sectors including medical sector for quantitative analysis,and summarizes the impact of the stock price of the Chinese medical sector under the COVID-19 epidemic.In order to provide theoretical basis and reference for the study of the influence and countermeasures of the medical sector in this emergency situation.