Stock Price Reaction when Covid -19 Exist: Moderating by Firm’s Operating Cash Flow

Q3 Economics, Econometrics and Finance

Jurnal Ekonomi Malaysia Pub Date : 2021-01-01 DOI:10.17576/jem-2021-5501-5

D. Nugroho, M. Pertiwi

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引用次数: 4

Abstract

COVID-19 has been declared a global pandemic by the WHO, rendering the stock markets volatile. Investors predict that the pandemic can be a threat to a company's cash flow, whereas managers use the last year’s financial condition to defend their stock price. We evaluate whether the company's operating cash flow moderates the company's financial condition and stock price reactions, in addition to making a comparison between the period before and during the COVID-19 pandemic using Difference in Difference. The regression analysis model used is a random effect model. The objects of this research are the hotel, tourism, restaurant, and retail trade sub-sector companies in the first quarter and second quarter of 2020, and 2019 and 2018 annually. We found that none of the firm's financial condition affected the stock's price reaction. We also found that operating cash flow strengthens the relationship between cash and ROA to the stock price. The results of this study further imply that the COVID-19 pandemic caused a significant stock price reaction when compared between the time before and during the COVID-19 disaster in Indonesia. The current study is hoped to contribute towards supporting the government in formulating policies to stimulate the currently-slumping economy. This study can also assist the investors in preparing their analysis to determine whether what action they should take in regards to their stocks, considering that our research implicitly reflects the development of conditions in several industrial sectors. © 2021 Penerbit Universiti Kebangsaan Malaysia. All rights reserved.

查看原文本刊更多论文

Covid -19存在时的股价反应:公司经营性现金流的调节作用

世界卫生组织(WHO)宣布新冠肺炎(COVID-19)为全球大流行，导致股市剧烈波动。投资者预测，疫情可能对公司的现金流构成威胁，而管理人员则利用去年的财务状况来捍卫自己的股价。我们评估了公司的经营性现金流是否调节了公司的财务状况和股价反应，并使用Difference in Difference对COVID-19大流行之前和期间进行了比较。采用的回归分析模型为随机效应模型。本研究的对象是2020年第一季度和第二季度，以及2019年和2018年的酒店、旅游、餐饮和零售贸易子行业公司。我们发现公司的财务状况没有影响股票价格的反应。我们还发现经营性现金流量强化了现金、资产收益率与股价之间的关系。本研究的结果进一步表明，与2019冠状病毒病在印度尼西亚发生之前和期间相比，2019冠状病毒病大流行引起了显著的股价反应。本研究希望能协助政府制定政策，以刺激目前低迷的经济。考虑到我们的研究隐含地反映了几个行业的发展状况，本研究也可以帮助投资者准备他们的分析，以确定他们应该采取什么行动。©2021马来西亚Penerbit大学。版权所有。

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

Jurnal Ekonomi Malaysia Economics, Econometrics and Finance-Economics, Econometrics and Finance (all)

CiteScore

1.50

自引率

0.00%

发文量

期刊介绍： Jurnal Ekonomi Malaysia (JEM) is a Scopus indexed peer reviewed journal published by UKM Press (Penerbit UKM), Universiti Kebangsaan Malaysia. The journal publishes original research articles as well as short notes, comments and book reviews on all aspects of economics, particularly those pertaining to the developing economies. Articles are published in both English and Malay.