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

Date
2023-12
Authors
Hassan, Tarek
Version
Accepted manuscript
OA Version
Citation
T. Hassan. 2023. "Firm-Level Exposure to Epidemic Diseases: COVID-19, SARS, and H1N1" The Review of Financial Studies, Volume 36, Issue 12, pp.4919-4964. https://doi.org/10.1093/rfs/hhad044
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.
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