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Corporate immunity, national culture and stock returns: Startups amid the COVID-19 pandemic
Small and medium-sized firms, particularly startups, are highly vulnerable to the COVID-19 pandemic because of their financial instability. Using a sample of listed startups across four countries, we investigate whether a startup's built-up capacity pre-COVID-19 can stimulate corporate immunity...
Autores principales: | , , |
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Formato: | Online Artículo Texto |
Lenguaje: | English |
Publicado: |
Elsevier Inc.
2022
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Materias: | |
Acceso en línea: | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8590515/ https://www.ncbi.nlm.nih.gov/pubmed/36530769 http://dx.doi.org/10.1016/j.irfa.2021.101975 |
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author | Hoang, Huy Viet Nguyen, Cuong Nguyen, Duc Khuong |
author_facet | Hoang, Huy Viet Nguyen, Cuong Nguyen, Duc Khuong |
author_sort | Hoang, Huy Viet |
collection | PubMed |
description | Small and medium-sized firms, particularly startups, are highly vulnerable to the COVID-19 pandemic because of their financial instability. Using a sample of listed startups across four countries, we investigate whether a startup's built-up capacity pre-COVID-19 can stimulate corporate immunity to endure the impact of the COVID-19 pandemic, reflected via stock performance. We find that the increase in the accumulated COVID-19 confirmed cases worsens stock returns and that the negative effect is alleviated if startups are greater in size as well as have low debt, large board size and CEO duality. Moreover, national cultural dimensions significantly moderate the relationship between stock returns and COVID-19. The COVID-19 negative impact is relieved in societies where people are more collectivistic and cooperative, less tolerant towards uncertainty, and more long-term oriented. Overall, our results support the consolidation of corporate capacities and suggest policymakers consider national culture when formulating COVID-19 or similar infectious pandemic strategies. |
format | Online Article Text |
id | pubmed-8590515 |
institution | National Center for Biotechnology Information |
language | English |
publishDate | 2022 |
publisher | Elsevier Inc. |
record_format | MEDLINE/PubMed |
spelling | pubmed-85905152021-11-15 Corporate immunity, national culture and stock returns: Startups amid the COVID-19 pandemic Hoang, Huy Viet Nguyen, Cuong Nguyen, Duc Khuong Int Rev Financ Anal Article Small and medium-sized firms, particularly startups, are highly vulnerable to the COVID-19 pandemic because of their financial instability. Using a sample of listed startups across four countries, we investigate whether a startup's built-up capacity pre-COVID-19 can stimulate corporate immunity to endure the impact of the COVID-19 pandemic, reflected via stock performance. We find that the increase in the accumulated COVID-19 confirmed cases worsens stock returns and that the negative effect is alleviated if startups are greater in size as well as have low debt, large board size and CEO duality. Moreover, national cultural dimensions significantly moderate the relationship between stock returns and COVID-19. The COVID-19 negative impact is relieved in societies where people are more collectivistic and cooperative, less tolerant towards uncertainty, and more long-term oriented. Overall, our results support the consolidation of corporate capacities and suggest policymakers consider national culture when formulating COVID-19 or similar infectious pandemic strategies. Elsevier Inc. 2022-01 2021-11-11 /pmc/articles/PMC8590515/ /pubmed/36530769 http://dx.doi.org/10.1016/j.irfa.2021.101975 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 Hoang, Huy Viet Nguyen, Cuong Nguyen, Duc Khuong Corporate immunity, national culture and stock returns: Startups amid the COVID-19 pandemic |
title | Corporate immunity, national culture and stock returns: Startups amid the COVID-19 pandemic |
title_full | Corporate immunity, national culture and stock returns: Startups amid the COVID-19 pandemic |
title_fullStr | Corporate immunity, national culture and stock returns: Startups amid the COVID-19 pandemic |
title_full_unstemmed | Corporate immunity, national culture and stock returns: Startups amid the COVID-19 pandemic |
title_short | Corporate immunity, national culture and stock returns: Startups amid the COVID-19 pandemic |
title_sort | corporate immunity, national culture and stock returns: startups amid the covid-19 pandemic |
topic | Article |
url | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8590515/ https://www.ncbi.nlm.nih.gov/pubmed/36530769 http://dx.doi.org/10.1016/j.irfa.2021.101975 |
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