Petrochemical companies stock price volatility affected by Covid-۱۹ pandemic: A black swan event

One of the most important factors that investors pay attention to in stock markets is stock price fluctuations, which is the basis for evaluating the performance of company managers. The performance of the company's stock includes the yield from the resources under the company's control and is considered a suitable criterion for reaching the set goals. In the meantime, one of the things that influenced widely on the world financial markets is the outbreak of the ۲۰۱۹ Covid-۱۹ epidemic. The Covid-۱۹ pandemic is known as a black swan event since it was a rare, unexpected, unknown phenomenon with a high and universal impact. Therefore, the current research purpose is to investigate the fluctuations in the stock prices of petrochemical industry companies affected by the Covid-۱۹ pandemic. For this purpose, ۱۹ petrochemical companies of Tehran stock exchange were studied between ۲۰۱۷ to ۲۰۲۲. The data gathered daily and included ۱۹ petrochemical companies in ۲۲۰ working days for ۵ years. The results showed that the shock caused by the growth of the corona virus initially caused a decrease in price volatility in petrochemical companies, but after two periods, the reaction of price volatility to the shock was positive. Finally, the shock effect disappeared after seven cycles.

Keywords:

Stock price volatility , COVID-۱۹ pandemic , Petrochemical industry