The Long-term Impact of Covid-19 on Game Industry: Evidence from Daily New Confirmed Cases
DOI:
https://doi.org/10.54691/bcpbm.v35i.3249Keywords:
COVID-19, Rate of return on investment, Game industry.Abstract
In early 2020, the Covid-19 outbreak caused turmoil in global financial markets, and among the many industries that suffered severely, the gaming industry stood alone, instead growing explosively in the early stages of the outbreak. However, there was a plunge after 2021. This study evaluates how the pandemic has affected gaming markets in China and other international locations. In order to examine changes in the gaming sector in terms of ROE and volatility, a VAR model and an ARMA-GARCH model are built. This study discovers that unexpected epidemic outbreaks have a mainly beneficial influence on the ROE of the gaming sector, but that this advantage gradually diminishes over time as the normal epidemic eventually lessens investor worry. In the environment of a regular epidemic, investor panic is no longer as severe and the impact on gaming industry yields is quantitatively insignificant. Therefore, investors should invest rationally in this sector.
Downloads
References
Coronavirus cases: Worldometer. (2022-09-12) [2022-09-22]. https://www.worldometers.info/coronavirus/
Vidovic, L. Industries most and least impacted by COVID-19 from a probability of default perspective. (2022-02-11) [2022-09-22]. https://www.spglobal.com/marketintelligence/en/news-insights/blog/industries-most-and-least-impacted-by-covid-19-from-a-probability-of-default-perspective-january-2022-update
Klein, A., & Smith, E. Explaining the economic impact of covid-19: Core Industries and the Hispanic workforce. (2022-03-09) [2022-09-22]. https://www.brookings.edu/research/explaining-the-economic-impact-of-covid-19-core-industries-and-the-hispanic-workforce/
Skwarczek, B. Council post: How the gaming industry has leveled up during the pandemic. (2022-04-14) [2022-09-22]. https://www.forbes.com/sites/forbestechcouncil/2021/06/17/how-the-gaming-industry-has-leveled-up-during-the-pandemic/?sh=28df959a297c
Clement, J. COVID-19 impact on the gaming industry worldwide - statistics & facts. (2021-06-04) [2022-09-22]. https://www.statista.com/topics/8016/covid-19-impact-on-the-gaming-industry-worldwide/#dossierKeyfigures
Browne, R. Video game sales set to fall for first time in years as industry braces for recession. (2022-07-07) [2022-09-22]. https://www.cnbc.com/2022/07/07/video-game-industry-not-recession-proof-sales-set-to-fall-in-2022.html
Benfell, G. Decline in video game spending continued through Q2 2022. (2022-08-02) [2022-09-22]. https://www.gamespot.com/articles/decline-in-video-game-spending-continued-through-q2-2022/1100-6506086/
National Health Commission of the People’s Republic of China. [2022-09-22]. http://en.nhc.gov.cn/
World Health Organization Homepage. [2022-09-22]. https://www.who.int/
Eastmoney Homepage. [2022-09-22]. https://choice.eastmoney.com/
Brandt, P. T., & Williams, J. T. Multiple time series models. 2007
Engle R F. Autoregressive conditional heteroscedasticity with estimates of the variance of United Kingdom inflation. Econometrica, Journal of the econometric society, 1982, 987-1007.
Bollerslev, T. A conditionally heteroskedastic time series model for speculative prices and rates of return. The Review of Economics and Statistics, 1986,69(3): 542.
Girard E., Omran M. On the relationship between trading volume and stock price volatility in CASE. Int. J. Manag. Financ. 2009, 5:110–134.
Chen G, Firth M, Rui O M. The dynamic relation between stock returns, trading volume, and volatility. Financial Review, 2001, 36(3): 153-174.
Downloads
Published
Issue
Section
How to Cite
