Investors' Risk Aversion in a Tail Risk Event.

Bibliographic Details
Title:	Investors' Risk Aversion in a Tail Risk Event.
Authors:	Ameer, Rashid¹ (AUTHOR) rameer@ipu.ac.nz, Chan, Peter¹ (AUTHOR) pchan@ipu.ac.nz
Source:	Asia-Pacific Financial Markets. Jun2026, Vol. 33 Issue 2, p759-800. 42p.
Subject Terms:	Subsidies, Risk aversion, COVID-19 pandemic, Investment risk, Abnormal returns, Rate of return on stocks, Causal inference, Australasians
Geographic Terms:	Australia, New Zealand
Abstract:	The COVID-19 pandemic necessitated unprecedented government interventions to mitigate economic fallout. This study examines the impact of wage subsidy payment schemes implemented between March 2020 and December 2021 in Australia and New Zealand on the stock market performance of recipient firms. The findings reveal that first wage subsidy payments (30 March 2020) had an immediate positive effect on the stock market performance of recipient firms in Australia, with higher risk-adjusted excess returns 0.47%, higher cumulative investment return of 2%, (approximately less than 10 days) compared to peer groups. While Australia made twice as many wage subsidy payments as New Zealand, a longer duration scheme in New Zealand (10 days longer) resulted in slightly higher return for recipient firms (0.28% compared to 0.03%) in Australia. Using Difference-in-Difference approach, the recipient firms outperformed and had positive long-term dynamic effects in Australia compared to New Zealand. These results imply that risk averse portfolio managers should carefully evaluate government wage subsidy schemes, as varied outcomes underscore the complex interplay between policy duration and economic uncertainties. [ABSTRACT FROM AUTHOR]
	Copyright of Asia-Pacific Financial Markets is the property of Springer Nature and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
Database:	Business Source Index

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Header	DbId: bsx DbLabel: Business Source Index An: 193064765 RelevancyScore: 1435 AccessLevel: 6 PubType: Academic Journal PubTypeId: academicJournal PreciseRelevancyScore: 1435
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Items	– Name: Title Label: Title Group: Ti Data: Investors' Risk Aversion in a Tail Risk Event. – Name: Author Label: Authors Group: Au Data: <searchLink fieldCode="AR" term="%22Ameer%2C+Rashid%22">Ameer, Rashid</searchLink><relatesTo>1</relatesTo> (AUTHOR)<i> rameer@ipu.ac.nz</i><br /><searchLink fieldCode="AR" term="%22Chan%2C+Peter%22">Chan, Peter</searchLink><relatesTo>1</relatesTo> (AUTHOR)<i> pchan@ipu.ac.nz</i> – Name: TitleSource Label: Source Group: Src Data: <searchLink fieldCode="JN" term="%22Asia-Pacific+Financial+Markets%22">Asia-Pacific Financial Markets</searchLink>. Jun2026, Vol. 33 Issue 2, p759-800. 42p. – Name: Subject Label: Subject Terms Group: Su Data: <searchLink fieldCode="DE" term="%22Subsidies%22">Subsidies</searchLink><br /><searchLink fieldCode="DE" term="%22Risk+aversion%22">Risk aversion</searchLink><br /><searchLink fieldCode="DE" term="%22COVID-19+pandemic%22">COVID-19 pandemic</searchLink><br /><searchLink fieldCode="DE" term="%22Investment+risk%22">Investment risk</searchLink><br /><searchLink fieldCode="DE" term="%22Abnormal+returns%22">Abnormal returns</searchLink><br /><searchLink fieldCode="DE" term="%22Rate+of+return+on+stocks%22">Rate of return on stocks</searchLink><br /><searchLink fieldCode="DE" term="%22Causal+inference%22">Causal inference</searchLink><br /><searchLink fieldCode="DE" term="%22Australasians%22">Australasians</searchLink> – Name: SubjectGeographic Label: Geographic Terms Group: Su Data: <searchLink fieldCode="DE" term="%22Australia%22">Australia</searchLink><br /><searchLink fieldCode="DE" term="%22New+Zealand%22">New Zealand</searchLink> – Name: Abstract Label: Abstract Group: Ab Data: The COVID-19 pandemic necessitated unprecedented government interventions to mitigate economic fallout. This study examines the impact of wage subsidy payment schemes implemented between March 2020 and December 2021 in Australia and New Zealand on the stock market performance of recipient firms. The findings reveal that first wage subsidy payments (30 March 2020) had an immediate positive effect on the stock market performance of recipient firms in Australia, with higher risk-adjusted excess returns 0.47%, higher cumulative investment return of 2%, (approximately less than 10 days) compared to peer groups. While Australia made twice as many wage subsidy payments as New Zealand, a longer duration scheme in New Zealand (10 days longer) resulted in slightly higher return for recipient firms (0.28% compared to 0.03%) in Australia. Using Difference-in-Difference approach, the recipient firms outperformed and had positive long-term dynamic effects in Australia compared to New Zealand. These results imply that risk averse portfolio managers should carefully evaluate government wage subsidy schemes, as varied outcomes underscore the complex interplay between policy duration and economic uncertainties. [ABSTRACT FROM AUTHOR] – Name: AbstractSuppliedCopyright Label: Group: Ab Data: <i>Copyright of Asia-Pacific Financial Markets is the property of Springer Nature and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract.</i> (Copyright applies to all Abstracts.)
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RecordInfo	BibRecord: BibEntity: Identifiers: – Type: doi Value: 10.1007/s10690-025-09520-y Languages: – Code: eng Text: English PhysicalDescription: Pagination: PageCount: 42 StartPage: 759 Subjects: – SubjectFull: Subsidies Type: general – SubjectFull: Risk aversion Type: general – SubjectFull: COVID-19 pandemic Type: general – SubjectFull: Investment risk Type: general – SubjectFull: Abnormal returns Type: general – SubjectFull: Rate of return on stocks Type: general – SubjectFull: Causal inference Type: general – SubjectFull: Australasians Type: general – SubjectFull: Australia Type: general – SubjectFull: New Zealand Type: general Titles: – TitleFull: Investors' Risk Aversion in a Tail Risk Event. Type: main BibRelationships: HasContributorRelationships: – PersonEntity: Name: NameFull: Ameer, Rashid – PersonEntity: Name: NameFull: Chan, Peter IsPartOfRelationships: – BibEntity: Dates: – D: 01 M: 06 Text: Jun2026 Type: published Y: 2026 Identifiers: – Type: issn-print Value: 13872834 Numbering: – Type: volume Value: 33 – Type: issue Value: 2 Titles: – TitleFull: Asia-Pacific Financial Markets Type: main
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