The influence of corona pandemic on stock returns of companies listed on the Palestine Stock Exchange

IF 3.6 Q1 BUSINESS, FINANCE
N. Badwan, A. Awad
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Abstract

Purpose This study aims to explore and verify the influence of the corona pandemic on the stock returns of the Palestinian companies listed on the Palestine Exchange during the period 2020–2021. Design/methodology/approach The research makes use of secondary financial data from 52 companies in the industrial, investment, services, banking and insurance sectors. Many financial ratios are calculated to assess stock returns: current ratio, cash ratio and average collection time as liquidity measures; debt-to-equity ratio as an indication of leverage or solvency; and net profit margin as an indicator of profitability. The research examines ratios between the (2020 and 2021) precorona outbreak using the Wilcoxon signed rank test and financial ratio analysis during the corona pandemic. Findings The findings show that liquidity in the investment, banking, insurance and industrial sectors has decreased significantly, whereas liquidity in the service sector has improved. The statistics reveal a considerable growth in debt in the service sector, while it stays unchanged in the other sectors. However, there is no discernible change in profitability during and after the corona outbreak. Research limitations/implications The present research faced many limitations, such as the approach to gathering primary data, which depended heavily on disclosures, financial reports and secondary data, as well as only analyzing one context and one country. Practical implications The findings of this study can guide the Palestinian government and decision-makers to respond to the COVID-19 outbreak and must act quickly because strong short-term policies are more functional than long-term policy measures. In addition, the temporal discrepancy between their policy actions and financial regulations regarding the stage of the outbreak, integrating monetary treatment methods, strengthening their control over exchange rate fluctuations and extending the duration of financial participation measures that ensure stable exchange rates, such as attempting to restrict trade of the monetary system between countries was assessed to reduce the important monetary stimulation policy. Originality/value This study presents important facts and results for regulators and decision-makers regarding the investment, industry, banking, insurance and services sectors as sectors that are most affected by the corona pandemic as a sample for this study from the Palestinian companies listed in Palestine Stock Exchange due to the corona pandemic.
新冠肺炎疫情对巴勒斯坦证券交易所上市公司股票收益的影响
本研究旨在探讨和验证冠状病毒大流行对2020-2021年在巴勒斯坦交易所上市的巴勒斯坦公司股票收益的影响。设计/方法/方法该研究利用了来自工业、投资、服务、银行和保险行业的52家公司的二手财务数据。计算许多财务比率来评估股票回报:流动比率、现金比率和平均收款时间作为流动性指标;资产负债率:作为杠杆或偿付能力指标的资产负债率;并将净利润率作为盈利能力的指标。该研究使用Wilcoxon签名秩检验和冠状病毒大流行期间的财务比率分析,检查了冠状病毒爆发前(2020年和2021年)的比率。研究结果表明,投资、银行、保险和工业部门的流动性明显下降,而服务业的流动性有所改善。统计数据显示,服务部门的债务大幅增长,而其他部门的债务保持不变。然而,在冠状病毒爆发期间和之后,盈利能力没有明显变化。目前的研究面临许多限制,例如收集原始数据的方法,严重依赖于披露,财务报告和二手数据,以及只分析一个背景和一个国家。本研究的结果可以指导巴勒斯坦政府和决策者应对COVID-19疫情,必须迅速采取行动,因为强有力的短期政策比长期政策措施更有效。此外,评估了它们的政策行动与金融条例在爆发阶段、整合货币处理方法、加强对汇率波动的控制和延长确保汇率稳定的金融参与措施(如试图限制国家间货币体系的贸易)之间的时间差异,以减少重要的货币刺激政策。独创性/价值本研究为监管机构和决策者提供了重要的事实和结果,这些事实和结果涉及投资、工业、银行、保险和服务部门,这些部门受冠状病毒大流行影响最大,本研究的样本来自因冠状病毒大流行而在巴勒斯坦证券交易所上市的巴勒斯坦公司。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
4.30
自引率
0.00%
发文量
18
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