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The Effect of COVID-19 Pandemic on the Stock Market of Agri-food Companies in Poland

Author

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  • Elzbieta Kacperska
  • Jakub Kraciuk

Abstract

Purpose: The aim of this study was to compare the effect of shock related to the COVID pandemic on the rates of return from shares of agri-food companies in Poland. Project/Methodology/Approach: In order to investigate the effect of the COVID pandemic on the capital market abnormal rates of return from shares were calculated as those rates of return, which may be considered the response of the market to the outbreak of the pandemic and its consequences. Results: Results of this analysis indicate a considerable drop in share prices and rates of return from shares of the WIG companies and agri-food companies following the detection of the first coronavirus case. In the analysed period the rates of return from shares of agri-food companies were higher than those from the WIG companies. Practical implications: This study indicates a research gap in this respect. The investigations have a huge effect on decisions of investors, enterprises from the agri-food sector and agribusiness. Results of this study will provide insight into the situation in the stock market during the pandemic, while they will also aid entities when making investment decisions and planning for the future. Originality/value: The novelty of this paper is connected with the contribution to science, since it is the first empirical study concerning the effect of the COVID-19 pandemic on the stock market in the agri-food sector of Poland.

Suggested Citation

  • Elzbieta Kacperska & Jakub Kraciuk, 2021. "The Effect of COVID-19 Pandemic on the Stock Market of Agri-food Companies in Poland," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 3), pages 274-290.
    • Handle: RePEc:ers:journl:v:xxiv:y:2021:i:special3:p:274-290
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    Cited by:

    1. Elżbieta Kacperska & Jakub Kraciuk, 2021. "Changes in the Stock Market of Food Industry Companies during the COVID-19 Pandemic—A Comparative Analysis of Poland and Germany," Energies, MDPI, vol. 14(23), pages 1-17, November.
    2. Iwona Bak & Beata Szczecinska, 2021. "The Financial Situation of Enterprises in the Clothing and Footwear Sector in the Face of the COVID-19 Pandemic," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 233-245.
    3. Izabella Lecka & Janusz Gudowski & Tomasz Wołowiec, 2022. "CSR in Poland and the Implementation of Sustainable Development Goals in the Energy Sector during the COVID-19 Pandemic," Energies, MDPI, vol. 15(19), pages 1-25, September.

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    More about this item

    Keywords

    Coronavirus; COVID-19; stock market; Pandemic; SARS-CoV-2; agri-food companies; Poland;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • G01 - Financial Economics - - General - - - Financial Crises
    • G02 - Financial Economics - - General - - - Behavioral Finance: Underlying Principles
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading

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