An Empirical Study on the Holiday Effect of China's Time-Honored Companies

TL;DR

This study empirically investigates the holiday effect on China's time-honored brand companies, revealing significant post-holiday returns especially in alcohol-related sectors during the Chinese New Year period.

Contribution

It provides new empirical evidence on the holiday effect specific to China's traditional brands, highlighting sector differences and implications for revitalization strategies.

Findings

Time-honored brand stocks show significant post-holiday effects.

Alcoholic beverage companies are more sensitive to holiday effects.

Pharmaceutical companies do not exhibit significant holiday effects.

Abstract

The stock segment of China's time-honored brand enterprises has an important position in our securities stock market. The holiday effect is one of the market anomalies that occur in the securities market, which refers to the phenomenon that the stock market has significantly different returns than other trading days around festivals. The study of the holiday effect of China's time-honored brand enterprises can provide fresh ideas for the revitalization of our time-honored brands and the revitalization of time-honored enterprises. This paper takes listed companies of China's time-honored brand enterprises as the research object and focuses on the impact of the holiday effect on listed companies of China's time-honored brands with the help of the event study, and empirically analyses the changes in the return of listed companies of China time-honored brands during the Spring Festival period from 2012 to 2021. The empirical results reveal that: the time-honored brand concept stocks have a significant post-holiday effect during the Chinese New Year period, the time-honored alcoholic beverage enterprises are more sensitive to the Chinese New Year reflection, while the holiday effect of the time-honored pharmaceutical manufacturing enterprises is not significant.