Dear friends.
My name is Cecilia Marquez, I’m university teacher from 2007.Today, my work in the class is about Administrative Sciences.
The Administratives Sciences are a tool or a base for any organization or company/ business/ enterprise, and We can’t be cut off from events that are everywhere of the world, like the COVID 19, because we are born, live and dead in organizations whether publics/ states or privates, whom are parts of this world .
To begin, I’m pleased to begin this new activity. I’m going to compare “Effect of this (COVID 19) in different countries or organizations '', for this I’m choosed reading 2 scientific articles and then I’m going to compare to get two conclusions about this.
With the aim of make this activity we should look the unit 4 and taking scientific articles of there, but I couldn't find this in the educative platform, so I wait that the scientific articles finded with my effort, been great received, because this, It isn’t my mistake/ error and was very difficult search.
In this essay, I’ll compare countries included in ASEAN vs countries like the UK or US front of COVID 19.
Both articles have information about the consequences of COVID 19 and its influence in economic growth, which is very comforting because it was hard to find scientific articles that could be used for this activity.
Now just in point. These studies explore the vaccination in the impact on stock returns in countries. This study contributes to taking the COVID-19 vaccination impact
No one could predict that the COVID-19 pandemic would be a long-lasting problem facing most of the world. All industries are suffering from the ongoing COVID-19 pandemic, until recently. This was shown from the estimation of the world’s gross output (GO) in 2020, which was −3.5; specifically, all countries also had a negative GO.
One of the efforts to overcome the rising cases of COVID-19 is the vaccination program. Since the first quarter of 2021, almost all countries have started a COVID-19 vaccination program; however, the impact of the COVID-19 vaccination on economic growth is still rarely explored because the program is still in the early stages and there is not enough data to analyze. Despite that, the vaccination program is indeed an excellent start to cope with the spread of COVID-19. The program’s outcome is to slow down the spread and reduce positive cases of the COVID-19. The increasing number of vaccinated people can stabilize a saturated condition. With the growing number of people vaccinated, people will feel more secure and think positively about the future, which will help raise reasonable expectations in the stock market.
The COVID-19 pandemic has caused major public health and economic disruption. At the same time, a pandemic allows researchers to assess market efficiency; namely, whether, to what extent, and how swiftly stock markets incorporated information related to COVID-19. Soon after the outbreak of the pandemic, research on this front was conducted
The aim of this essay was to analyze the market efficiency hypothesis with regards to the US and United Kingdom (UK) markets, investigating the impact of the promising news of the vaccines’ successful trials and, subsequently, their authorization.
Several researchers had studied the financial market performance response to the COVID-19 vaccination. These studies can show that vaccination gives a significant effect on the global market. However, the variety of vaccines and each country’s vaccination policies would result in different stock market reactions. In the case of countries member of ASEAN no study considers the vaccination impact. However, in US or UK cases there are studies showing a positive effect of the vaccines’ announcements in terms of increase in the daily returns.
The results to ASEAN, it is shown that the case growth negatively impacted the stock returns. This is in line with the scientific article and This found conflicting results in the vaccination growth. The vaccination growth is supposed to impact the stock return positively, but it harms the stock return, because in trading They do not move solely on investors’ sentiment, but many factors interfere with the market, such as government interventions, news, abnormal trading, etc.
If we look at the US, the Pfizer vaccine obtained emergency use authorization and began rolling out for the general public. However, there were several events that might have contributed, at least partially, in the negative returns for the period, as riots occurred at the US Capitol which resulted in the deaths of four civilians and one law enforcement personnel and another way the US President Joe Biden was inaugurated and sworn. He pledged a USD 1.9 trillion package to fight the COVID-19 pandemic and to revive the US economy. Furthermore, there was growing uncertainty around the impeachment trial of former US President Trump for encouraging the US Capital riots.
In contrast to the UK, It appears that the market reacted swiftly to the news of successful trials, as average returns increased from negative 0.80% at the beginning of the period, compared to 3.74% at the end of the period considered.
Conclusions
To sum up, we can say:
Firstly, ASEAN member’s countries show us results that contrast with the expectation that vaccination should bring positive sentiment to the investors. Perhaps, the ASEAN countries' members' governments need to push vaccination policy more aggressively. This is a significant move to stabilize the investors’ trust that governments can guarantee the citizen’s welfare. This would make the economy slowly recover, and the investors’ positive sentiment will follow eventually, and next, the financial market can be stabilized in the end.
Secondly, the UK appear to has reacted to the encouraging news of the vaccines’ availability and did it market seems to have reflected the announcements faster
Finally, the US also appears to have reacted to the encouraging news of the vaccine's availability, although it did it more slowly than the UK.
All this shows us that emerging or industrialized countries have had difficulties in the face of this pandemic and this has hardly affected organizations whether publics/ states or privates, who are parts of this world and also they have responded positively more early or later.
Reference
Herlina M, Mafruhat AY, Kurniati E et al. The stock market reaction to COVID-19 vaccination in ASEAN [version 1; peer review: 1 approved, 1 approved with reservations]. F1000Research 2022, 11:363 (https://doi.org/10.12688/f1000research.110341.1)
Abushosheh M, Bohara S, Contu D et al. How did the US and UK markets react to the COVID-19 vaccines’ announcements? A preliminary assessment [version 1; peer review: 1 approved with reservations]. F1000Research 2022, 11:485 (https://doi.org/10.12688/f1000research.109050.1)
Young G, Xiao P, Newcomb K and Michael E. Interplay between COVID-19 vaccines and social measures for ending the SARS-CoV-2 pandemic [version 2; peer review: 1 approved with reservations, 1 not approved]. F1000Research 2022, 10:803 (https://doi.org/10.12688/f1000research.54729.2)
