Covid-19: Corporate diversification and post-crash returns

This paper examines the impact of corporate diversification on stock returns during and after the market crash caused by Covid-19. Using regression and survival analyses, we find that diversified firms experience worse returns and slower improvement in stock prices than focused firms. However, diver...

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Detalles Bibliográficos
Autores principales: Tokbolat, Yerzhan, Le, Hang
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Elsevier Inc. 2022
Materias:
Article
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8520443/
https://www.ncbi.nlm.nih.gov/pubmed/34690609
http://dx.doi.org/10.1016/j.frl.2021.102501
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author Tokbolat, Yerzhan
Le, Hang
author_facet Tokbolat, Yerzhan
Le, Hang
author_sort Tokbolat, Yerzhan
collection PubMed
description This paper examines the impact of corporate diversification on stock returns during and after the market crash caused by Covid-19. Using regression and survival analyses, we find that diversified firms experience worse returns and slower improvement in stock prices than focused firms. However, diversified firms trading at diversification premium have better returns and faster recovery compared to those trading at discount. Our findings presented here can be relevant to academics and industry professionals in their understanding of the role of corporate diversification in difficult times.
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spelling pubmed-85204432021-10-18 Covid-19: Corporate diversification and post-crash returns Tokbolat, Yerzhan Le, Hang Financ Res Lett Article This paper examines the impact of corporate diversification on stock returns during and after the market crash caused by Covid-19. Using regression and survival analyses, we find that diversified firms experience worse returns and slower improvement in stock prices than focused firms. However, diversified firms trading at diversification premium have better returns and faster recovery compared to those trading at discount. Our findings presented here can be relevant to academics and industry professionals in their understanding of the role of corporate diversification in difficult times. Elsevier Inc. 2022-05 2021-10-16 /pmc/articles/PMC8520443/ /pubmed/34690609 http://dx.doi.org/10.1016/j.frl.2021.102501 Text en © 2021 Elsevier Inc. All rights reserved. Since January 2020 Elsevier has created a COVID-19 resource centre with free information in English and Mandarin on the novel coronavirus COVID-19. The COVID-19 resource centre is hosted on Elsevier Connect, the company's public news and information website. Elsevier hereby grants permission to make all its COVID-19-related research that is available on the COVID-19 resource centre - including this research content - immediately available in PubMed Central and other publicly funded repositories, such as the WHO COVID database with rights for unrestricted research re-use and analyses in any form or by any means with acknowledgement of the original source. These permissions are granted for free by Elsevier for as long as the COVID-19 resource centre remains active.
spellingShingle Article
Tokbolat, Yerzhan
Le, Hang
Covid-19: Corporate diversification and post-crash returns
title Covid-19: Corporate diversification and post-crash returns
title_full Covid-19: Corporate diversification and post-crash returns
title_fullStr Covid-19: Corporate diversification and post-crash returns
title_full_unstemmed Covid-19: Corporate diversification and post-crash returns
title_short Covid-19: Corporate diversification and post-crash returns
title_sort covid-19: corporate diversification and post-crash returns
topic Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8520443/
https://www.ncbi.nlm.nih.gov/pubmed/34690609
http://dx.doi.org/10.1016/j.frl.2021.102501
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