Abstract
While the stock market crashed in the first quarter after the outbreak of COVID-19, this paper finds that bio-tech firms and their investors could take advantage of the COVID-19 investment opportunity and earn positive abnormal returns. Bio-tech firms earn abnormal returns of 1.63 percent per day—which can be translated into average capital gains of about 86.7 million NT dollars per day—around the event day on which the WHO declared COVID-19 a global emergency. Positive returns continue after the event day. Moreover, small firms and firms that enjoy greater patent originality and receiving government RnD subsidies earn higher abnormal returns. Key words: COVID-19, novel Coronavirus diseases, stock returns, bio-tech firms
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