Stock price performance of pharmaceutical companies: pre-vaccine COVID-19 - post-vaccine COVID-19

Abstract

This paper performs an analysis of the behaviour of the shares of the main pharmaceutical companies that research to obtain vaccines with a high degree of efficacy for COVID-19. A multiple regression econometric model is proposed, which relates stock prices to the impact of vaccine development on stock prices, including a dummy variable -over the time series- in the analysis. The results suggest significant associations between some pharmaceutical companies that developed vaccines in record time in the period analysed and an impact on the sector’s earnings performance.