Journal of Accounting, Finance & Management Strategy






Volume 16, Number 2, December 2021

Impact of COVID-19 Pandemic on Different Industries in Taiwan Stock Market -- A Case Study of Electronics and Biotech Industries


This study utilizes the event study method to explore the impact of the Corona Virus Disease 2019 (COVID-19) on different industries in the Taiwan stock market. The selected samples are electronics and biotech industries of Taiwan listed companies. In this study, the standardized abnormal return (SAR) and the standardized cumulative abnormal return (SCAR) are calculated separately, and the two industries are tested whether there is a significant difference through the nonparametric test. The event day is set on January 30, 2020. The results show that biotech stocks have positive abnormal returns on the event day, while electronics stocks do not. In different event windows, the SCARs of electronics stocks and biotech stocks also show different appearances. Further, the SCARs of biotech stocks are significantly higher than that of electronics stocks in the event window (0, 20), (0,60) and (0,120), indicating that the biotech stocks seem to be benefited from the COVID-19 pandemic. As time stretches to 240 trading days after the event day, there is no significant difference between the two industries. Based on the results, this research provides a reference for investors to make investment decisions.

Keywords: Covid-19, Event Study, Abnormal Return (AR), Industry

JEL Classification: G14, G41, I15