Investor’s behavior regarding company earnings announcements during the epidemic based on the American capital market

基于美国资本市场疫情期间 投资者对公司盈利公告的行为

This paper examines the sentiment of investors towards earnings announcements during the COVID-19?pandemic. It aims to determine whether the market’s reaction to earnings reporting during a public health?crisis is similar to that during a recession. The study uses the Event Study method to test the hypothesis?that the expected abnormal return is zero for each stock during the event window. The volume of abnormal?return during the event window is also examined to determine if it is unusual. The study analyzes?the abnormal returns of 30 companies listed in the Dow Jones Index between 2019 and 2021, using the?Capital Asset Pricing Model (CAPM) to derive the beta, alpha, and goodness of fit metrics. The findings?show that the beta values for most companies fluctuated significantly, indicating a change in market risk,?while the excess return alpha fluctuated between positive and negative for most companies. The R2 metric?showed inconsistency across companies. The paper sheds light on the importance of monitoring and?understanding market risks and their impact on the performance of individual companies. The research?findings can help investors and financial analysts make informed investment decisions during exceptional?circumstances such as a pandemic.

This study aimed to examine the abnormal returns linked with earnings announcements made by publishing firms amidst the COVID-19 pandemic. This study also sought to draw a comparison between these abnormal returns and those from previous earnings announcements made by the same firms before the pandemic. To achieve this, this paper utilized the event study research method to analyze the abnormal returns and discern any differences in how investors reacted to earnings announcements during these exceptional circumstances.