Firm-level exposure to epidemic diseases: COVID-19, SARS, and H1N1

Tarek A. Hassan, Stephan Hollander, L.A.G.M. van Lent, Markus Schwedeler, Ahmed Tahoun

Research output: Contribution to journalArticleScientificpeer-review

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.
Original languageEnglish
Pages (from-to)4919-4964
JournalReview of Financial Studies
Volume36
Issue number12
DOIs
Publication statusPublished - Dec 2023

Keywords

  • macroeconomic shocks
  • epidemic diseases
  • firms
  • uncertainty
  • sentiment
  • computational linguistics

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