IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v53y2023ics1544612323000247.html
   My bibliography  Save this article

Covid-19 vaccines and investment performance: Evidence from equity funds in European Union

Author

Listed:
  • Mirza, Nawazish
  • Umar, Muhammad
  • Mangafic, Jasmina

Abstract

In this paper, we analyze the impact of the marketing authorization of EMA-approved vaccines on the returns of equity funds in the EU. Using the event study methodology, we report that the introduction of all vaccines had a positive impact on the funds' returns. Higher abnormal returns were associated with the earlier vaccines, indicating the first-mover advantage and the abnormal returns were persistent across several event windows. The findings imply that equity markets welcomed the vaccine administration as an important pharmaceutical intervention to support the quasi-revival of business activities. Consequently, there was a significant uplift in the economic bottom line.

Suggested Citation

  • Mirza, Nawazish & Umar, Muhammad & Mangafic, Jasmina, 2023. "Covid-19 vaccines and investment performance: Evidence from equity funds in European Union," Finance Research Letters, Elsevier, vol. 53(C).
    • Handle: RePEc:eee:finlet:v:53:y:2023:i:c:s1544612323000247
    DOI: 10.1016/j.frl.2023.103650
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1544612323000247
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2023.103650?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Saliha Theiri & Ramzi Nekhili & Jahangir Sultan, 2022. "Cryptocurrency liquidity during the Russia–Ukraine war: the case of Bitcoin and Ethereum," Journal of Risk Finance, Emerald Group Publishing Limited, vol. 24(1), pages 59-71, October.
    2. Umar, Muhammad & Ji, Xiangfeng & Mirza, Nawazish & Rahat, Birjees, 2021. "The impact of resource curse on banking efficiency: Evidence from twelve oil producing countries," Resources Policy, Elsevier, vol. 72(C).
    3. Sitara Karim & Muhammad Abubakr Naeem & Nawazish Mirza & Jessica Paule-Vianez, 2022. "Quantifying the hedge and safe-haven properties of bond markets for cryptocurrency indices," Journal of Risk Finance, Emerald Group Publishing Limited, vol. 23(2), pages 191-205, January.
    4. Berninger, Marc & Fiesenig, Bruno & Schiereck, Dirk, 2021. "The performance of corporate bond issuers in times of financial crisis: empirical evidence from Latin America," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 127629, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    5. Ahmed Ghorbel & Mohamed Fakhfekh & Ahmed Jeribi & Amine Lahiani, 2022. "Extreme dependence and risk spillover across G7 and China stock markets before and during the COVID-19 period," Journal of Risk Finance, Emerald Group Publishing Limited, vol. 23(2), pages 206-244, February.
    6. Linda H. Chen & George J. Jiang & Kevin X. Zhu, 2022. "Information uncertainty of fiscal year end quarter earnings," Review of Accounting and Finance, Emerald Group Publishing Limited, vol. 21(2), pages 83-108, April.
    7. Pascal Nguyen & Younes Ben Zaied & Thu Phuong Pham, 2019. "Does idiosyncratic risk matter? Evidence from mergers and acquisitions," Journal of Risk Finance, Emerald Group Publishing Limited, vol. 20(4), pages 313-329, September.
    8. Viet Hoang Le & Hans-Jörg von Mettenheim & Stéphane Goutte & Fei Liu, 2022. "News-based sentiment: can it explain market performance before and after the Russia–Ukraine conflict?," Journal of Risk Finance, Emerald Group Publishing Limited, vol. 24(1), pages 72-88, November.
    9. He, J. & Schiereck, D., 2019. "Sovereign rating announcements and the integration of African banking markets," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 119342, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    10. Mirza, Nawazish & Abbas Rizvi, Syed Kumail & Saba, Irum & Naqvi, Bushra & Yarovaya, Larisa, 2022. "The resilience of Islamic equity funds during COVID-19: Evidence from risk adjusted performance, investment styles and volatility timing," International Review of Economics & Finance, Elsevier, vol. 77(C), pages 276-295.
    11. Reddy, Krishna & Mirza, Nawazish & Naqvi, Bushra & Fu, Mingli, 2017. "Comparative risk adjusted performance of Islamic, socially responsible and conventional funds: Evidence from United Kingdom," Economic Modelling, Elsevier, vol. 66(C), pages 233-243.
    12. Naqvi, Bushra & Mirza, Nawazish & Rizvi, Syed Kumail Abbas & Porada-Rochoń, Małgorzata & Itani, Rania, 2021. "Is there a green fund premium? Evidence from twenty seven emerging markets," Global Finance Journal, Elsevier, vol. 50(C).
    13. Syed Kumail Abbas Rizvi & Nawazish Mirza & Bushra Naqvi & Birjees Rahat, 2020. "Covid-19 and asset management in EU: a preliminary assessment of performance and investment styles," Journal of Asset Management, Palgrave Macmillan, vol. 21(4), pages 281-291, July.
    14. Mirza, Nawazish & Naqvi, Bushra & Rahat, Birjees & Rizvi, Syed Kumail Abbas, 2020. "Price reaction, volatility timing and funds’ performance during Covid-19," Finance Research Letters, Elsevier, vol. 36(C).
    15. Berninger, Marc & Fiesenig, Bruno & Schiereck, Dirk, 2021. "The performance of corporate bond issuers in times of financial crisis: empirical evidence from Latin America," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 127645, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    16. Marc Berninger & Bruno Fiesenig & Dirk Schiereck, 2021. "The performance of corporate bond issuers in times of financial crisis: empirical evidence from Latin America," Journal of Risk Finance, Emerald Group Publishing Limited, vol. 22(1), pages 78-92, June.
    17. Ayesha Afzal & Nawazish Mirza, 2011. "Size and Value Premium in International Portfolios: Evidence from 15 European Countries," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 61(2), pages 173-190, June.
    18. Saliha Theiri & Ramzi Nekhili & Jahangir Sultan, 2022. "Cryptocurrency liquidity during the Russia–Ukraine war: the case of Bitcoin and Ethereum," Journal of Risk Finance, Emerald Group Publishing Limited, vol. 24(1), pages 59-71, October.
    19. Jianan He & Dirk Schiereck, 2019. "Sovereign rating announcements and the integration of African banking markets," Journal of Risk Finance, Emerald Group Publishing Limited, vol. 20(5), pages 484-500, November.
    20. Ahmed Ghorbel & Mohamed Fakhfekh & Ahmed Jeribi & Amine Lahiani, 2022. "Extreme dependence and risk spillover across G7 and China stock markets before and during the COVID-19 period," Post-Print hal-03810101, HAL.
    21. Samra Chaudary & Nawazish Mirza, 2017. "Domestic and cross-border returns to bidders in acquisitions into the E.U," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 30(1), pages 1021-1032, January.
    22. Berninger, M. & Fiesenig, B. & Schiereck, D., 2021. "The performance of corporate bond issuers in times of financial crisis: empirical evidence from Latin America," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 127036, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    23. Linda H. Chen & George J. Jiang & Kevin X. Zhu, 2022. "Information uncertainty of fiscal year end quarter earnings," Review of Accounting and Finance, Emerald Group Publishing Limited, vol. 21(2), pages 83-108, April.
    24. Ji, Xiangfeng & Chen, Xueqi & Mirza, Nawazish & Umar, Muhammad, 2021. "Sustainable energy goals and investment premium: Evidence from renewable and conventional equity mutual funds in the Euro zone," Resources Policy, Elsevier, vol. 74(C).
    25. Viet Hoang Le & Hans-Jörg von Mettenheim & Stéphane Goutte & Fei Liu, 2022. "News-based sentiment: can it explain market performance before and after the Russia–Ukraine conflict?," Journal of Risk Finance, Emerald Group Publishing Limited, vol. 24(1), pages 72-88, November.
    26. Jundong (Jeff) Wang, 2020. "Does analyst forecast dispersion represent investors’ perceived uncertainty toward earnings?," Review of Accounting and Finance, Emerald Group Publishing Limited, vol. 19(3), pages 289-312, April.
    27. Nawazish Mirza & Mawal Sara Saeed & Kumail Abbas Rizvi, 2013. "The Pricing of Size, Book to Market and Financial Leverage in Euro Stocks," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 26(2), pages 177-190, January.
    28. Jundong (Jeff) Wang, 2020. "Does analyst forecast dispersion represent investors’ perceived uncertainty toward earnings?," Review of Accounting and Finance, Emerald Group Publishing Limited, vol. 19(3), pages 289-312, April.
    29. Jamila Abaidi Hasnaoui & Syed Kumail Abbas Rizvi & Krishna Reddy & Nawazish Mirza & Bushra Naqvi, 2021. "Human capital efficiency, performance, market, and volatility timing of asian equity funds during COVID-19 outbreak," Journal of Asset Management, Palgrave Macmillan, vol. 22(5), pages 360-375, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wang, Haiyan & Mirza, Nawazish & Umar, Muhammad & Xie, Xin, 2023. "Climate change and blue returns: Evidence from Niche firms in China," Finance Research Letters, Elsevier, vol. 56(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ji, Xiangfeng & Chen, Xueqi & Mirza, Nawazish & Umar, Muhammad, 2021. "Sustainable energy goals and investment premium: Evidence from renewable and conventional equity mutual funds in the Euro zone," Resources Policy, Elsevier, vol. 74(C).
    2. Pan, Changchun & Sun, Tiezhu & Mirza, Nawazish & Huang, Yuzhe, 2022. "The pricing of low emission transitions: Evidence from stock returns of natural resource firms in the GCC," Resources Policy, Elsevier, vol. 79(C).
    3. Rahat, Birjees & Nguyen, Pascal, 2022. "Risk-adjusted investment performance of green and black portfolios and impact of toxic divestments in emerging markets," Energy Economics, Elsevier, vol. 116(C).
    4. Umar, Muhammad & Mirza, Nawazish & Rizvi, Syed Kumail Abbas & Naqvi, Bushra, 2022. "ESG scores and target price accuracy: Evidence from sell-side recommendations in BRICS," International Review of Financial Analysis, Elsevier, vol. 84(C).
    5. Guo, Xiaozhu & Liang, Chao & Umar, Muhammad & Mirza, Nawazish, 2022. "The impact of fossil fuel divestments and energy transitions on mutual funds performance," Technological Forecasting and Social Change, Elsevier, vol. 176(C).
    6. Mirza, Nawazish & Umar, Muhammad & Afzal, Ayesha & Firdousi, Saba Fazal, 2023. "The role of fintech in promoting green finance, and profitability: Evidence from the banking sector in the euro zone," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 33-40.
    7. Yan, Lei & Mirza, Nawazish & Umar, Muhammad, 2022. "The cryptocurrency uncertainties and investment transitions: Evidence from high and low carbon energy funds in China," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    8. Liu, Kaiyuan & Afzal, Ayesha & Zhong, Yifan & Hasnaoui, Amir & Yue, Xiao-Guang, 2023. "Investigating the resource curse: Evidence from MENA and N-11 countries," Resources Policy, Elsevier, vol. 80(C).
    9. Lang, Qiaoqi & Ma, Feng & Mirza, Nawazish & Umar, Muhammad, 2023. "The interaction of climate risk and bank liquidity: An emerging market perspective for transitions to low carbon energy," Technological Forecasting and Social Change, Elsevier, vol. 191(C).
    10. Chen, Zhonglu & Umar, Muhammad & Su, Chi-Wei & Mirza, Nawazish, 2023. "Renewable energy, credit portfolios and intermediation spread: Evidence from the banking sector in BRICS," Renewable Energy, Elsevier, vol. 208(C), pages 561-566.
    11. Muhammad Abubakr Naeem & Sitara Karim & Aviral Kumar Tiwari, 2023. "Risk Connectedness Between Green and Conventional Assets with Portfolio Implications," Computational Economics, Springer;Society for Computational Economics, vol. 62(2), pages 609-637, August.
    12. Dai, Zhifeng & Luo, Zhuang & Liu, Chang, 2023. "Dynamic volatility spillovers and investment strategies between crude oil, new energy, and resource related sectors," Resources Policy, Elsevier, vol. 83(C).
    13. Naqvi, Bushra & Mirza, Nawazish & Rizvi, Syed Kumail Abbas & Porada-Rochoń, Małgorzata & Itani, Rania, 2021. "Is there a green fund premium? Evidence from twenty seven emerging markets," Global Finance Journal, Elsevier, vol. 50(C).
    14. Wang, Xiang & Yin, Jian & Yang, Yao & Muda, Iskandar & Abduvaxitovna, Shamansurova Zilola & AlWadi, Belal Mahmoud & Castillo-Picon, Jorge & Abdul-Samad, Zulkiflee, 2023. "Relationship between the resource curse, Forest management and sustainable development and the importance of R&D Projects," Resources Policy, Elsevier, vol. 85(PA).
    15. Jamila Abaidi Hasnaoui & Syed Kumail Abbas Rizvi & Krishna Reddy & Nawazish Mirza & Bushra Naqvi, 2021. "Human capital efficiency, performance, market, and volatility timing of asian equity funds during COVID-19 outbreak," Journal of Asset Management, Palgrave Macmillan, vol. 22(5), pages 360-375, September.
    16. Su, Chi-Wei & Rizvi, Syed Kumail Abbas & Naqvi, Bushra & Mirza, Nawazish & Umar, Muhammad, 2022. "COVID19: A blessing in disguise for European stock markets?," Finance Research Letters, Elsevier, vol. 49(C).
    17. Umar, Muhammad & Mirza, Nawazish & Hasnaoui, Jamila Abaidi & Rochoń, Małgorzata Porada, 2022. "The nexus of carbon emissions, oil price volatility, and human capital efficiency," Resources Policy, Elsevier, vol. 78(C).
    18. Marc Berninger & Paul Bossong & Dirk Schiereck & Marcel Steinhardt, 2023. "Too transparent for signalling? A global analysis of bond issues by property companies," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 63(3), pages 3125-3145, September.
    19. Shan, Shan & Umar, Muhammad & Mirza, Nawazish, 2022. "Can robo advisors expedite carbon transitions? Evidence from automated funds," Technological Forecasting and Social Change, Elsevier, vol. 180(C).
    20. Zhou, Xiaoxiao & Lin, Junjie & Wang, Lu & Huang, Hongyun & Zhao, Xin, 2022. "Wind power resources and China's sustainable development roadmap: Evidence from China," Resources Policy, Elsevier, vol. 79(C).

    More about this item

    Keywords

    Public health; Equity returns; Mutual funds; Covid-19 vaccines;
    All these keywords.

    JEL classification:

    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finlet:v:53:y:2023:i:c:s1544612323000247. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/frl .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.