Coronavirus Impact on the leading stock markets and IPOs Intention

Abstract

The goal of this research report is to look into the impact of the coronavirus disease (COVID-19) on the stock markets of China and the United States, focusing on the major stock indices in both countries' stock markets while also looking at the performance of companies in various industries during the epidemic. Also, the impact of the epidemic on the IPOs status of firms in various industries, in order to determine which industries and companies are worth paying attention to during the epidemic. Methodology: Based on the S&P Global 100 closing price, a comparison and event study of index closing prices for the aforementioned countries during the COVID-19 pandemic and pre-pandemic. To that purpose, we utilised cross-sectional Mest and non-parametric Mann-Whitney U-tests to look at changes in major stock indexes during the pandemic, cross-sectional t-tests for sample analysis, and OLS (ordinary least the squares) market model to combine the market and industries to make conclusions. Data visualisation, financial indicator calculations, and a clear display of analysis results are required for the success of IPOs efforts. Findings: The study discovered that different industries reacted to the stock market in different ways. There was a positive link between the number of listed firms and their industry stock performance as the market size of the industry grew. Furthermore, different industries have varied reactions to the stock market, and the IPOs activities of companies in different industries will influence the stock market's future development path.Implication: COVID-19 has supported another set of tech industries, although first affecting a portion of traditional industries.Originality: During COVID-19, no research has been done to determine the impact of the stock market on IPOs activities in various industries.