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The Affordable Care Act and the Risk and Return on Hospital Stocks
The Journal of Health Care Finance
View Archive Info| Field | Value | |
| Title |
The Affordable Care Act and the Risk and Return on Hospital Stocks
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| Creator |
Bundt, Et Al, Thomas; Associate Professor of Finance & Quantitative Analysis Hillsdale College |
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| Description |
We empirically examine the effect of the Affordable Care Act on the risk and return of publically traded hospital stocks. Our methodology uses the single-index model of stock excess returns amended to control for events related to the passage and implementation of health-care reform. We test for changes in ex-post alpha, beta, and firm-specific risk. We find a reversal effect with alphas at first decreasing upon the bill’s passage, then increasing upon the 2012 Supreme Court decision. We find a similar reversal effect for market risk, with betas, at first increasing then decreasing. Overall we find ACA produced positive alphas with marginal statistical significance and less diverse betas mirroring that of the market. Finally, we find health-care reform had no significant effect on firm-specific risk.
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| Publisher |
Worldwebtalk.com, Inc.
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| Contributor |
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| Date |
2016-08-03
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article |
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| Format |
application/pdf
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| Identifier |
http://healthfinancejournal.com/index.php/johcf/article/view/80
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| Source |
Journal of Health Care Finance; Vol 43, No 1, Summer 2016
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| Language |
eng
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| Relation |
http://healthfinancejournal.com/index.php/johcf/article/view/80/81
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| Rights |
Copyright (c) 2019 Journal of Health Care Finance
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