New Articles – Finance

Science and technology contribute 87.5% to economic growth (Solow, 1957). Enterprises, especially high-tech enterprises, largely perform research and Development (R&D) activities. Risks of R&D activities lead to free-riding among enterprises. The income tax preference is preferred to control the free-riding because of reflecting the incentive effect of tax revenue on the economic development (Bronzini & Piselli, 2016). Most industrialized countries implement special income tax incentives to boost the R&D investment of enterprises (Elschner et al., 2011). The additional deduction, accelerated depreciation, and innovation box are common policies (McCutchen, 1993). For instance, Japan issues the schedule of fixed assets depreciation in 1951 and stimulate Innovation of enterprises. Since 2003, OECD countries continually increase incentives for enterprises to the R&D investment. China begins to offer income tax preference to R&D investments of enterprises in the 1990s.

Not everyone has enough skills and abilities to tackle complex financial markets and make prudent financial decisions in uncommon situations. People worldwide have been using paid and unpaid sources for advice from someone they trust to overcome them. Numerous studies have witnessed fruitful results from financial advisors in financial planning, such as retirement planning and wealth creation (Irving, 2012; Stolper & Walter, 2017). The current issues, such as complexities of the financial market and difficulties arising out of the economic crisis, are becoming worrisome (Crotty, 2009; Taylor, 2011; Xiao & O’Neill, 2016). The volatile economic environment and the problems of retirement financial security (Wang & Shi, 2014) add to its severity. The most important of all is to know how to make a prudent economic decision in financial aspects (Lusardi & Mitchell, 2014). The suffering resulting from the likelihood of losing money due to erroneous financial conclusions leads to financial anxiety (Cwynar et al., 2020).

According to data from the World Health Organization (WHO, 2020), the Coronavirus (COVID-19) outbreak in late December has spread to 216 countries, territories or regions, causing more than 21.5 (214,435,732) million confirmed casualties and 4,471,650 deaths worldwide on August 26, 2021. Due to the large and continuous spread of the novel coronavirus worldwide, on March 11, 2020, the WHO officially declared it a pandemic (Mahmud et al., 2021). In most economies, the COVID-19 pandemic has caused uncertainty and a temporary closure with positive cases coronavirus. Therefore, the purpose of this article is to assess the significant impact of the COVID-19 pandemic on intraday stock returns. Many investors close their holdings, including the stock market’s assets, thereby influencing the stock market. According to Jegadeesh and Titman (1993), the stock purchase method is appropriate when stock sales have performer poorly during the holding period of past 3-months to the 12-months. Besides, these forms of momentum gain are inappropriate to justify risk-based momentum. In exchange for 1 to 12 months (Moskowitz et al., 2012), the persistence in partially changed in a longer horizon.