The Impact Of COVID-19 On Equity Yields In The Pharmaceutical Industry Stocks

In recent years,"black swan events" have occurred frequently,and the stock market,which represents the "barometer" of economic development,has been frequently affected relatively greatly.COVID-19 has had a serious impact on China’s economy with a sudden momentum,the market order has been disrupted,and the stock yield has changed greatly,which has had an impact on enterprises in related industries in the stock market,and has also attracted high attention from investors.To some extent,the change in stock returns reflects the state of the economy,and exploring the impact of COVID-19 public health emergency on the stock returns of the pharmaceutical industry,which is highly correlated,can reflect the impact of the epidemic on related industries and even the entire external economy.It is worth analyzing how the stock yields of the pharmaceutical industry,which are related to the prevention and treatment of infectious diseases,have been affected by the impact of COVID-19.Based on this background,this paper studies the impact of COVID-19 on the stock yield of China’s pharmaceutical industry.This paper studies the impact of COVID-19 on stock returns,and takes investors’ attention as an intermediary,by studying investors’ attention to public health emergencies such as COVID-19,and constructing Baidu index search popularity by crawling keyword daily search volume data,using it as a proxy indicator for investors to pay attention to in empirical research,and then constructing models to discuss the impact of COVID-19 on stock returns in the pharmaceutical industry.The main conclusions drawn in this paper are:first,the occurrence of COVID-19,a public health event,has had a significant positive impact on the stock yield of China’s pharmaceutical industry;Second,the cumulative confirmed growth rate measuring the development of COVID-19 has a positive and significant relationship with stock returns,and the cumulative death growth rate has a negative and significant relationship with stock returns.Moreover,the impact of the development of COVID-19 on the stock yield of the pharmaceutical industry is gradually weakening;Third,affected by COVID-19,the direction of change in stock returns in various secondary industries is generally the same,but the degree of change is different;Due to the different nature of property rights,the stock returns of state-owned enterprises and non-state-owned enterprises in the pharmaceutical industry are different due to the impact of COVID-19.Fourth,investors pay attention to the significant intermediary effect in the development of COVID-19 affecting the stock yield of the pharmaceutical industry.Finally,based on the empirical research conclusions,this paper puts forward corresponding suggestions from three perspectives: listed companies in the pharmaceutical industry,investors themselves and relevant government departments.By studying the impact of COVID-19 on the stock yield of the pharmaceutical industry,this paper provides theoretical and practical evidence for behavioral finance from the perspective of limited investor attention,and provides reference and reference for how to maintain financial stability and recover the real economy when the stock market of the relevant industry encounters public health emergencies.