Firm-level Exposure to Epidemic Diseases: Covid-19, SARS, and H1N1

Jahr: 2023

Typ: Journal Publication

Fachzeitschrift: Review of Financial Studies

Abstract

We construct text-based measures of the primary concerns listed firms associated with the spread of COVID-19 and other epidemic diseases. We identify which firms perceive to lose or gain from a given epidemic and textually decompose the epidemic’s effect on the firm’s demand and supply. We find that the effects of COVID-19 manifest as a simultaneous shock to demand and supply, with both shocks affecting firms’ market valuations in equal measure on average. By contrast, demand-related impacts appear more important in accounting for the observed collapse in firm-level investment during the COVID-19 crisis.

Veröffentlichungsinformationen

TRR 266 researchers

Laurence van Lent Frankfurt School of Finance & Management

Laurence van Lent is a Professor of Accounting and Economics at the Frankfurt School of Finance and Management. His current research interests include the political economy of financial markets, the biological roots of executive behavior, and organizational design and performance management. He currently holds editorial responsibility at The Accounting Review and the Journal of Accounting Research, two of the leading journals in the field. Van Lent’s research has been published in top journals in economics, management, finance, and accounting. He is particularly interested in the education of Ph.D. students and among his past students are tenured professors at the University of Chicago, LBS, and Melbourne.

External researchers

Tarek Hassan

Stephan Hollander

Markus Schwedeler

Ahmed Tahoun

Start Page

4919

End Page

4964

Issue Number

Volume Number

DOI

DOI Link

Cite this article as

Hassan, T., Hollander, S., van Lent, L., & Tahoun, A. (2023). Firm-level exposure to epidemic diseases: Covid-19, SARS, and H1N1. Review of Financial Studies, 36(12), 4919–4964. https://doi.org/10.1093/rfs/hhad044

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