The short‐run response of Saudi Arabia stock market to the outbreak of <scp>COVID</scp>‐19 pandemic: An event‐study methodology

Abstract This paper investigates the short‐term response of Saudi stock market (Tadawul) to COVID‐19 outbreak. Event study methodology applied data derived from 21 industry groups that constitute calculate abnormal returns for trading days after announcement in both China and Arabia. The results indicate estimated CARs their sum on event day were not statistically significant. Furthermore, formal first case had a negative but significant impact market. In contrast, 9‐days window, confirmed Arabia effect. Moreover, most negatively affected banks, consumer services, capital goods, transportation commercial whereas telecommunication services food beverage positively at window (+1, +9). general, market's become weaker windows come +9), different found have responses