COVID-19 PANDEMIC POWER PLAY IN BURSA MALAYSIA: HOW GLOVE-RELATED ANNOUNCEMENTS SHAPED STOCK MARKET INVESTORS’ REACTION

Abstract

This study investigates how the Malaysian stock market reacted to glove-related corporate announcements during the COVID-19 pandemic. Focusing on the period between March and September 2020, we employ the event study methodology to analyze 69 announcements from both established glove manufacturers and new entrants listed on Bursa Malaysia. Our findings reveal significant abnormal returns following initial announcements, particularly those signaling diversification into glove manufacturing by nontraditional firms. These early disclosures were perceived as material by investors, while subsequent updates drew diminishing reactions. By examining this sector-specific response during a global crisis, the study contributes original insights into investor behavior, market efficiency, and the informational value of corporate disclosures in emerging markets. Future research could further explore trading volatility and firm-specific determinants influencing stock market responses.