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Stock price reaction to appointment of a chief health officer during COVID-19

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  • Ichev, Riste

Abstract

This study examines how appointing a chief health officer (CHO) at the corporate-board level during the COVID-19 outbreak affects the stock returns of US firms. As the COVID-19 progressed, the negative abnormal return (CAR) is −7.5%. In contrast, shares of firms that had appointed a CHO before or during the window surrounding the date of the first reported COVID-19 case (the WHO declaration) exhibited positive CAR of ＋6.29% (＋0.136%). CARs surrounding the exact CHO appointment date once the COVID-19 had already broken out the effect was even stronger, ＋6.91%. Size, leverage, growth, and R&D intensity influence significantly returns during the outbreak.

Suggested Citation

  • Ichev, Riste, 2021. "Stock price reaction to appointment of a chief health officer during COVID-19," Journal of Behavioral and Experimental Finance, Elsevier, vol. 31(C).
    • Handle: RePEc:eee:beexfi:v:31:y:2021:i:c:s221463502100085x
    DOI: 10.1016/j.jbef.2021.100541
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    More about this item

    Keywords

    Chief health officer; COVID-19; Investor sentiment; Stock markets; Corporate board;
    All these keywords.

    JEL classification:

    • G4 - Financial Economics - - Behavioral Finance
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation

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