Government Agency Product Endorsements and Stock Valuations: A COVID-19 Event Study

  •  Mark Schaub    


During the COVID-19 pandemic, a US government agency (the Environmental Protection Agency) made two announcements recommending the products of 2 different firms in the Household & Personal Products industry. The announcements were official and posted to the EPA’s website on the dates of March 3, 2020 and July 6, 2020. Evidence shows these announcements added value to the firms that were promoted. Also, on a risk-adjusted and head-to-head basis, these announcing firms significantly outperformed the other large firms in the industry around the date of the announcements.

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