Scholarlink

<p>The COVID-19 pandemic necessitated unprecedented government interventions to mitigate economic fallout. This study examines the impact of wage subsidy payment schemes implemented between March 2020 and December 2021 in Australia and New Zealand on the stock market performance of recipient firms. The findings reveal that first wage subsidy payments (30 March 2020) had an immediate positive effect on the stock market performance of recipient firms in Australia, with higher risk-adjusted excess returns 0.47%, higher cumulative investment return of 2%, (approximately less than 10&#xa0;days) compared to peer groups. While Australia made twice as many wage subsidy payments as New Zealand, a longer duration scheme in New Zealand (10&#xa0;days longer) resulted in slightly higher return for recipient firms (0.28% compared to 0.03%) in Australia. Using Difference-in-Difference approach, the recipient firms outperformed and had positive long-term dynamic effects in Australia compared to New Zealand. These results imply that risk averse portfolio managers should carefully evaluate government wage subsidy schemes, as varied outcomes underscore the complex interplay between policy duration and economic uncertainties.</p>

错误：搜索内容不能为空，请输入英文关键词
错误：关键词超出字数限制，请精简
高级检索

Investors’ Risk Aversion in a Tail Risk Event

  • 期刊论文

  • 发表日期：

    2025年3月24日

查看全文
  • Rashid Ameer,
  • Peter Chan

摘要

The COVID-19 pandemic necessitated unprecedented government interventions to mitigate economic fallout. This study examines the impact of wage subsidy payment schemes implemented between March 2020 and December 2021 in Australia and New Zealand on the stock market performance of recipient firms. The findings reveal that first wage subsidy payments (30 March 2020) had an immediate positive effect on the stock market performance of recipient firms in Australia, with higher risk-adjusted excess returns 0.47%, higher cumulative investment return of 2%, (approximately less than 10 days) compared to peer groups. While Australia made twice as many wage subsidy payments as New Zealand, a longer duration scheme in New Zealand (10 days longer) resulted in slightly higher return for recipient firms (0.28% compared to 0.03%) in Australia. Using Difference-in-Difference approach, the recipient firms outperformed and had positive long-term dynamic effects in Australia compared to New Zealand. These results imply that risk averse portfolio managers should carefully evaluate government wage subsidy schemes, as varied outcomes underscore the complex interplay between policy duration and economic uncertainties.