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 language | English |
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Pages (from-to) | 4919-4964 |
Journal | Review of Financial Studies |
Volume | 36 |
Issue number | 12 |
DOIs | |
Publication status | Published - Dec 2023 |
Keywords
- macroeconomic shocks
- epidemic diseases
- firms
- uncertainty
- sentiment
- computational linguistics