Stock price reaction to appointment of a chief health officer during COVID-19

This study examines how appointing a chief health officer (CHO) at the corporate-board level during the COVID-19 outbreak affects the stock returns of US firms. As the COVID-19 progressed, the negative abnormal return (CAR) is -7.5%. In contrast, shares of firms that had appointed a CHO before or during the window surrounding the date of the first reported COVID-19 case (the WHO declaration) exhibited positive CAR of +6.29% (+0.136%). CARs surrounding the exact CHO appointment date once the COVID-19 had already broken out the effect was even stronger, +6.91%. Size, leverage, growth, and R&D intensity influence significantly returns during the outbreak. (C) 2021 Elsevier B.V. All rights reserved.