COVID-19 and investor sentiment influence on the US and European countries sector returns
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Author(s)Pedro Manuel Nogueira ReisLink to ORCID Index: https://orcid.org/0000-0003-1301-6645
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Carlos PinhoLink to ORCID Index: https://orcid.org/0000-0002-7422-4555
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DOIhttp://dx.doi.org/10.21511/imfi.17(3).2020.28
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Article InfoVolume 17 2020, Issue #3, pp. 373-386
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390 Downloads
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Creative Commons Attribution 4.0 International License
Although some studies recently address the association between COVID-19 sentiment and returns, volatility, or stock trading volume, no one conducts an analysis to measure the impact of investor rationality or irrationality on the influence on countries and sectors’ returns.
This work creates a text media sentiment and combines its influence with the outbreak cases on the stock market sector returns of the US, Europe, and their main countries most affected by the pandemic.
This allows us to perceive the ranking impact of rationality or irrationality on country and sector stock returns. This work applies a random-effects robust panel estimation, with an M-estimator. This paper concludes that US returns are more sensitive to sentiment, and thus more prone to irrational factors than confirmed cases compared to Europe and that country factors influence the returns differently. In Italy and Spain as the most punished countries in Europe apart from the UK, present sector indexes return more reactive to verified cases, or rationality, namely, tourism, real estate, and the automobile (this last one in Italy).
The importance of this work resides in providing a new in-depth analysis of irrational behavioral metrics among countries, which allows for comparison. Moreover, it allows observing which sectors’ and which countries’ asset returns are most sensitive to rational or irrational expressions of events, allowing for arbitraging, financial planning for investors, decision-makers, and academia on an in and out of pandemic context.
Acknowledgment
This work is funded by National Funds through the FCT – Foundation for Science and Technology, I.P., within the scope of the project Refª UIDB/05583/2020. Furthermore, we would like to thank the Research Centre in Digital Services (CISeD) and the Polytechnic Institute of Viseu for their support.
- Keywords
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JEL Classification (Paper profile tab)G15, G40
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References33
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Tables7
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Figures2
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- Figure 1. Sentiment for Europe and for the US
- Figure 2. Sentiment for the US and European countries
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- Table 1. Words search inserted on the news from 2004 till 2020, April 16th (million)
- Table 2. Summary statistics and variable definition
- Table 3. Random effects panel regression results for the US and Europe
- Table 4. OLS robust regressions for Spain and Italy
- Table 5. OLS robust regressions for Germany and UK
- Table 6. OLS robust regressions for France
- Table 7. Correlation coefficients among irrational behavior measured by the sentiment index duly standardized
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Starbucks coffee corporation’s marketing response to the COVID-19 pandemic
Conner V. Lombardi ,
Neejad T. Chidiac ,
Benjamin C. Record
doi: http://dx.doi.org/10.21511/im.17(2).2021.16
Innovative Marketing Volume 17, 2021 Issue #2 pp. 177-188 Views: 15077 Downloads: 14845 TO CITE АНОТАЦІЯThe ongoing COVID-19 pandemic has a significant influence on businesses and marketing strategies across the globe, including Starbucks Coffee. The COVID-19 pandemic has been completely novel in its unprecedented impact on the modern globalized economy. This in-depth analysis of this coffeehouse provides recommendations that were carefully considered within the context of the current public health crisis. The objective of this study was to systematically analyze the strategic marketing approach of Starbucks Coffee to generate recommendations that can not only be applied to Starbucks but marketing endeavors more broadly. A comprehensive review approach was adopted beginning with a thorough situational analysis. Problems and opportunities related to the marketing of Starbucks Coffee were investigated and recommendations were generated. All stages of the study were robustly supported with relevant citations. Starbucks has matrixed a complex corporate structure that supports not only its survival but its continued development even in an increasingly dense and competitive marketplace. While Starbucks must continue to intermittently reevaluate its key problems and key opportunities, especially in the approaching few financial years, the company is operating with impressive effectiveness through the adversities of 2020 thus far. After a careful analysis, Starbucks Coffee should increase the distribution of products that are more likely to succeed during the COVID-19 pandemic, expand pick-up and delivery services, implement additional store locations in underdeveloped geographic market segments, and utilize its vast array of promotional mediums to optimize brand positioning as they approach a reopening world.
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The impact of COVID-19 on the transportation and logistics industry
Dalia Perkumiene ,
Agbonmere Osamede ,
Regina Andriukaitienė ,
Olegas Beriozovas
doi: http://dx.doi.org/10.21511/ppm.19(4).2021.37
Problems and Perspectives in Management Volume 19, 2021 Issue #4 pp. 458-469 Views: 5621 Downloads: 9923 TO CITE АНОТАЦІЯIn this present age of globalization, the logistics and transportation industry has become an integral part of most businesses/firms as it is aimed at ensuring the effective movement of people, distribution of goods and services from one location to another on time. Therefore, this paper aims to analyze the impact of COVID-19 on the logistics and transportation sectors. The qualitative research approach was adopted using analysis and synthesis of scientific literature, data from news reports, organizational sites, and a case study of data contents. The paper presented the analysis of negative and positive effects of COVID-19 on the logistics and transportation industry. The study also discusses possible strategies and further steps for improvement of the logistics and transportation sector, including the automation and introduction of other technologies, a sustainable and flexible transportation system, cooperation of logistics and transportation business. Findings regarding the positive implications of COVID-19 show noticeable advancements in the logistics and transportation sector, such as the rise of e-commerce businesses with efficient delivery options, and the development of 3rd party logistics services as more companies outsource supply chain operations. The study revealed the importance of strategic planning with a joint effort from the research centers, public sector, private sector, and educational institutions as one of the proposed solutions for the logistics and transportation industry.
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The impact of social distancing policy on small and medium-sized enterprises (SMEs) in Indonesia
Muhtar Lutfi ,
Pricylia Chintya Dewi Buntuang ,
Yoberth Kornelius ,
Erdiyansyah ,
Bakri Hasanuddin
doi: http://dx.doi.org/10.21511/ppm.18(3).2020.40
Problems and Perspectives in Management Volume 18, 2020 Issue #3 pp. 492-503 Views: 3402 Downloads: 1267 TO CITE АНОТАЦІЯThis study aims to investigate the impact of social distancing policies on SMEs in Indonesia. It used a quantitative method with a survey design. Respondents were all SMEs in Indonesia that are affected by social distancing policies during the COVID-19 pandemic. It involved a total of 587 SME samples selected randomly. The data were collected through observations, questionnaires, and literature studies. The collected data were analyzed using descriptive statistics with SPSS software to determine the mean value. The result showed that social distancing policies affect SMEs during the COVID-19 pandemic. This is indicated by the decreasing income and demand for SMEs products, and even some have no income (mean values of 2.40) due to the social distancing policies. Besides, the policy’s impact is also shown in the increasing cost of raw materials and production costs due to supply chain problems (mean values of 4.79). The policy’s impact raises anxiety for SMEs to survive so that business actors change their plans by utilizing information technology (mean values of 4.81). This change is a strategy to survive due to the impact of the applied policies. Although social distancing policies affect SMEs’ survival during the pandemic, research findings show that SMEs in Indonesia did not terminate employment (mean values of 4.37) due to the presence of economic stimulus policies that helped SMEs survive and grow during the COVID-19 pandemic.
