Impact of COVID-19 Pandemic Announcement on the Market Value of Companies in the German Stock Index DAX30
28 April 2022 @ 3:00 pm - 4:30 pm
Online Research Seminar
3:00 pm, Thursday, 28 April 2022
While the literature in the range of Covid-19 related topics has started to examine the market impact of the pandemic, little evidence exists regarding the effect on the German stock index DAX30. This paper fills in the gap by analysing the impact of the COVID-19 pandemic announcements in March 2020 on the German Stock Index DAX30. Using an event study, we investigate how certain industries and specific companies in the index responded to the news, by using three event windows of different length. It mirrors the expectations and trust of the investors in the performance and valuation of certain industries. It was found that the impact of the event differs significantly among the 30 companies in 13 different industries. Some industries and their companies were strongly negatively affected, such as Real Estate, Utilities, Communication, Industrials and Financial Services. While three industries in our sample, Basic Materials, Online Food Ordering and Automobile, were found to be positively affected. Furthermore, possible reasons for those reactions for each of the companies are presented.
Impact of COVID-19 Pandemic Announcement on the Market Value of Companies in the German Stock Index DAX30 research paper
About the speaker
Olga Kandinskaia is Associate Professor of Finance and MSc Business Management Director at CIIM. She has PhD in Economics (1995) from the MGIMO-University in Moscow, Russia.
Originally from Moscow, Russia, Dr Kandinskaia moved to Cyprus in 2001, and she joined CIIM first on a part-time basis in 2002, and then on a full-time basis in 2011. She has 25+ years of experience in teaching undergraduate, postgraduate and executive courses at different universities and colleges in Cyprus, UK, Portugal, and Russia. Olga’s PhD research was in financial derivatives as risk management tools. At that time, she also had practical experience of working as a futures broker. Her current expertise is in the areas of Financial Management, Business Planning, Strategic Investment Decisions, Corporate Finance, and Business Valuation.
Olga is a passionate advocate of innovative teaching methods in business education, such as experiential learning, case method, and blended learning. Her teaching style is highly interactive, she emphasizes customized and practically relevant learning where theory is applied to real-life cases. Her finance classes include extensive Excel-based workshops designed to help students develop solid financial modeling skills. Olga’s teaching skills have earned high scores in student evaluations.
As Director of the MSc in Business Management at CIIM, Olga has created a unique postgraduate programme in Cyprus which has fully embraced a wide variety of experiential learning activities. Olga’s “Learning by Doing” innovative teaching method in business management received Silver and Bronze Awards by Cyprus Education Leaders Awards 2020.