Her the disclosure of this info in the period of financial downturn will bring about a related adverse reaction as in preceding subjects in this region. Research undertaken in this write-up aids recognize the guidelines of behaviour (inside the short term) regardless of whether the reaction of investors on updating the company’s assets in crisis circumstances is different than in instances of prosperity. The key hypothesis will be verified working with the occasion study methodology. It allows to verify no matter whether the upcoming information and facts about IoA throughout the COVID-19 pandemic confirms an existence of statistically substantial adverse abnormal returns. Based on the 55 situations of present reports informing about IoA, which have been submitted towards the investors within the year 2020 and finally certified for the investigation sample, I’ve not observed statistically significant negative abnormal returns on the adjacent days. The outcomes are distinct from those obtained by researchers who study the market reaction towards the IoA beneath non-crisis situations in the economy. Keywords: capital markets; accounting; financial reporting; financial crisis; COVID-19; shares; impairment of assets; write-off; occasion study; marketplace reactionCitation: Lisicki, Bartlomiej. 2021. Impairment of Assets and Marketplace Reaction through COVID-19 Pandemic on the Example of WSE. Dangers 9: 183. https://doi.org/10.3390/ risks9100183 Academic Editors: Pawel Smaga, Tomas Kliestik and Weidong Tian Received: 12 July 2021 Accepted: 13 October 2021 Published: 15 October1. Introduction The very first quarter of 2020 turned out to become the beginning of a difficult period that global economies have had to face, a minimum of because the economic crisis of 2008009. It was at this time that the COVID-19 pandemic (triggered by the SARS-CoV-2 virus) began to spread about the planet. Its appearance led to a destabilization of the world economy on an unprecedented scale. The occurrence of global provide and demand shocks resulted within a actual threat of a permanent recession on a difficult to estimate scale. Although the first case of COVID-19 infection was reported in China (within the city of Wuhan) as early as December 2019 (Singh et al. 2020), it was only the surge in situations and deaths from COVID-19 infection outside China that almost certainly led the World Overall health Organization to declare a global pandemic on 11 March 2020 (Planet Wellness Organization 2020). The fear of a spreading pandemic has brought on considerable changes in people’s lives. Social gatherings had been restricted, stores had been closed, mass events have been Pristinamycin Data Sheet canceled, and enterprise travel and tourist website traffic were halted. All these changes occurred as a way to prevent the virus from getting into new regions as a lot as you possibly can. Such a considerable destabilization of daily life had a drastic effect on the functioning from the economies of several countries. Some financial experts claim that because of the effects on the coronavirus pandemic, the international economy will likely undergo its deepest slump since the Good Depression of your 1930s, which occurred immediately after the stock marketplace crash of 1929. The first estimates as of Might 2020 pointed to a decline in global GDP of up to three percent, whilst some European nations were expected to contract by as significantly as 7.5 percent (International Monetary Fund 2020). The global-widening tightening, which resulted in the shutdown of economies, also resonated with all the capital market reaction. The panic peaked in mid-March, when thePublisher’s Note: MDPI stays neutral with regard to jurisdictional claims in published maps.