Research on The January Effect in Healthcare Sector Stock Prices

Abstract

This paper studies the existence of the January effect in healthcare sector stocks, whether the magnitude of the January effect changes in the stock market under different company sizes and different special periods. The study examines 12 sets of data across four stocks in the healthcare sector and generates separate charts. The study finds that, firstly it is confirmed that the existence of the January effect in healthcare sector stocks is confirmed; Secondly, it finds that the January effect is more pronounced in small companies than in large companies; Thirdly, it suggests that the January effect disappears in the years following COVID-19 crisis; Moreover, the January effect persisted during the financial crisis, despite the slump in stock prices. These findings provide the evidence of the January effect in healthcare sector stock prices, which is valuable for investment strategies of the investors.