Firm-Level Exposure to Epidemic Diseases: Covid-19, SARS, and H1N1
Journal
Review of Financial Studies
Subject
Accounting
Publishing details
Authors / Editors
Hassan T A;Hollander S;Tahoun A;van Lent L
Biographies
Publication Year
2023
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.
Available on ECCH
No
