Corporate immunity to the COVID-19 pandemic

Corporate immunity to the COVID-19 pandemic

2021 | Wenzhi Ding, Ross Levine, Chen Lin, Wensi Xie
The COVID-19 Resource Centre, established by Elsevier in January 2020, provides free information in English and Mandarin on the novel coronavirus. The centre is hosted on Elsevier Connect and grants permission for all COVID-19-related research to be immediately available in PubMed Central and other public repositories, with unrestricted reuse and analysis rights, provided that the original source is acknowledged. The paper "Corporate immunity to the COVID-19 pandemic" by Wenzhi Ding, Ross Levine, Chen Lin, and Wensi Xie examines the connection between corporate characteristics and stock price reactions to the COVID-19 pandemic. Using data on over 6,700 firms across 61 economies, the study finds that firms with stronger pre-2020 financial conditions, less exposure to COVID-19 through global supply chains and customer locations, more CSR activities, and less entrenched executives performed better. Family-controlled firms, large corporations, and governments also showed better stock returns, while firms with greater ownership by hedge funds and other asset management companies performed worse. The study also finds that stock markets positively price small amounts of managerial ownership but negatively price high levels of managerial ownership during the pandemic.The COVID-19 Resource Centre, established by Elsevier in January 2020, provides free information in English and Mandarin on the novel coronavirus. The centre is hosted on Elsevier Connect and grants permission for all COVID-19-related research to be immediately available in PubMed Central and other public repositories, with unrestricted reuse and analysis rights, provided that the original source is acknowledged. The paper "Corporate immunity to the COVID-19 pandemic" by Wenzhi Ding, Ross Levine, Chen Lin, and Wensi Xie examines the connection between corporate characteristics and stock price reactions to the COVID-19 pandemic. Using data on over 6,700 firms across 61 economies, the study finds that firms with stronger pre-2020 financial conditions, less exposure to COVID-19 through global supply chains and customer locations, more CSR activities, and less entrenched executives performed better. Family-controlled firms, large corporations, and governments also showed better stock returns, while firms with greater ownership by hedge funds and other asset management companies performed worse. The study also finds that stock markets positively price small amounts of managerial ownership but negatively price high levels of managerial ownership during the pandemic.
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Understanding Corporate immunity to the COVID-19 pandemic