Pandemics, intermediate goods, and corporate valuation

Luc Laeven

doi:10.1016/j.jimonfin.2021.102505

Pandemics, intermediate goods, and corporate valuation

Luc Laeven

Finance

Research output: Contribution to journal › Article › Scientific › peer-review

Abstract

We evaluate whether the changes in valuation of U.S. corporates during the first wave of the COVID-19 pandemic depend on their downstream or upstream industries’ exposure to social distancing. Using a new dataset on sectoral dependence on the use and sale of intermediate goods, we find that firms whose downstream sectors are more affected by social distancing suffer from a greater decline in stock prices during the first quarter of 2020. Such an effect is mitigated for large firms.

Original language	English
Article number	102505
Journal	Journal of International Money and Finance
Volume	120
DOIs	https://doi.org/10.1016/j.jimonfin.2021.102505
Publication status	Published - Feb 2022

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 10 Reduced Inequalities

Keywords

Cash
Intermediate goods
Liquidity
Pandemic
Valuation

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10.1016/j.jimonfin.2021.102505

1-s2.0-S026156062100156X-mainFinal published version, 393 KB

Cite this

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title = "Pandemics, intermediate goods, and corporate valuation",

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KW - Cash

KW - Intermediate goods

KW - Liquidity

KW - Pandemic

KW - Valuation

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Pandemics, intermediate goods, and corporate valuation

Abstract

UN SDGs

Keywords

Access to Document

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