The Influence of Negative Public Opinion on the Stock Market of Biopharmaceutical Enterprises under Covid-19
Keywords:
Public Opinion; Stock Price; Covid-19.Abstract
This report investigates the impact of negative public opinion on the stock prices of biopharmaceutical companies during the Covid-19 pandemic. The research questions include why public opinion affects the stock market of biopharmaceutical companies, the extent to which public opinion impacts biopharmaceutical enterprises, and what biopharmaceutical companies can do to avoid or manage these effects. The study first summarizes the process through which public opinion affects stock prices using a literature analysis. Next, it employs event study methodology to determine the Cumulative Abnormal Rate of Return (CAR) of negative events on stock prices. The reading and discussion volume of these events are used as independent variables in a regression model to quantify their effect on CAR, revealing that negative public opinion has a significant impact on stock prices.
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