IMPACT OF COVID-19 PANDEMIC ON THE STOCK PRICES OF THE NYSE-LISTED PHARMACEUTICAL COMPANIES

Abstract

The global spread of the epidemic has affected a wide range of industries. The number of COVID-19 infections has continued to increase over the past year, while the stock prices of pharmaceutical companies have shown exponential growth. This paper conducts a regression analysis based on data of the number of monthly COVID-19 infections in New York State and government spending on COVID-19 vaccines. Does the number of COVID-19 infections affect pharmaceutical companies’ stock prices of pharmaceutical companies? The analysis results confirmed that: an increase in total domestic spending on healthcare services is associated with higher stock prices of pharmaceutical companies listed on the New York Stock Exchange (NYSE).