Vinsamlegast notið þetta auðkenni þegar þið vitnið til verksins eða tengið í það: http://hdl.handle.net/1946/37166
The thesis analyzes the effect of the Coronavirus stimulus packages, implemented from the beginning of March until the end of May 2020, on stock prices in Germany, Italy, and the U.S. The thesis also analyzes if the effect differs depending on the size of the firms and the industry they are in. The methodology of an event study is applied where abnormal stock returns measure the impact of the packages on stock prices. The results indicate that the stimulus packages announced by the German government had a negative effect on the German stock market. In contrast, the packages announced by the European Union did not appear to have a clear effect. The stimulus packages implemented in Italy and the U.S. appear to have a statistically significant impact on the stock market in each country. Still, there is not a clear pattern across the packages. Some announcements appear to have a negative effect, other appear to have a positive effect while some announcements do not appear to have any effect. The announcement effect differs depending on the size of the firms and the industry they are in. Again, there is not a clear overall pattern across the packages. In Germany, there appears to be a statistical difference between mid-cap firms and large-cap firms around the announcements of the first stimulus packages. As in the case of Italy and the U.S., there appears to be a statistical difference between all three sizes at various points in time. Furthermore, in the U.S., small-cap firms appear to be the most affected in the majority of the weeks, while the large-cap firms appear to be least affected. The results could be explained by the fact that the packages are often aimed at small and medium-sized firms.
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