The performance of healthcare stocks in emerging markets during financial and commodity shocks
DOI:
https://doi.org/10.53753/jame.2600Anahtar Kelimeler:
Emerging markets- healthcare stocks- healthcare sub-sectors- external shocks- comparative analysis- event-based approachÖzet
The focus of this paper is on the emerging market healthcare sector, its sub-sectors, and the price movements of emerging market healthcare stocks during various events, such as two financial shocks and a commodity bust. As the health care sector is known to be defensive, stocks in emerging health care markets show strong resistance to external shocks relative to all emerging market stocks. The defensive structure is revealed by the dynamics and background of emerging market healthcare stocks. For the empirical analysis, the event-based approach is utilized to examine the impact of a significant event on a specific asset, stock, or security. By event studies, studies reveal how an asset behaves with the impact of a selected event in a given period. Increase in domestic healthcare spending, government expenditures for healthcare, and government support for healthcare sub-sectors, export-based sub-sectors such as pharma and biotechnology result in a decrease the fragility of emerging market healthcare stocks more compared to sectors such as financial and energy.
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