The COVID-19 pandemic, as a public health emergency, is not only causing human infections and deaths, it is also disrupting the stock market. Therefore, the outbreak of COVID-19 will have an impact on the economic environment, which will affect investor sentiment, causing stock price changes. Lee and Jiang ( 2002) believe that investor optimism will reduce earnings volatility, while investor pessimism will increase earnings volatility. According to the theory of behavioral finance, in addition to the basic value of stocks, emergencies will have an impact on investors’ psychological and behavioral factors, which in turn will have an important impact on stock prices. When faced with changes in the economic environment, the operating conditions of companies in the same industry are highly correlated (Moskowitz and Grinblatt 1999). Companies in the same industry face the same regulatory and policy environment and similar macroeconomic conditions. The traditional economic and financial theory holds that stock prices are mainly affected by market and firm characteristic-based factors. The purpose of this article is to evaluate the impact of COVID-19 on stock prices. Assessing and understanding the economic impact of COVID-19 has become an important issue. The short-term disasters generated by the pandemic also surpass any endogenous and extreme events in the past. The impact of COVID-19 on the economy is not a cyclical fluctuation in the traditional economic development process. In the “Global Economic Outlook” report in April 2020, the International Monetary Fund predicted that global gross domestic product (GDP) would fall by 3% throughout the year, while the World Trade Organization predicted that global trade could decline by as much as 32% in 2020. There are already clear signs of a recession in the global economy. According to real-time statistical data released by Johns Hopkins University, as of June 5, 2020, globally there have been 6,601,349 diagnosed cases of and 389,620 deaths from COVID-19. Economies around the world are presently facing severe challenges due to the COVID-19 outbreak. The outbreak and spread of novel coronavirus (COVID-19) disease across the world have seriously affected people’s production and life in general. The year 2020 is destined to be recorded in history because of extraordinary turn of events.
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