Firm efficiency and stock returns during the COVID-19 crisis

We investigate the relationship between firm efficiency and stock returns during the COVID-19 pandemic. We find that highly efficient firms experienced at least 9.44 percentage points higher cumulative returns during the market collapse. A long-short portfolio consisting of efficient and inefficient...

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Detalles Bibliográficos
Autores principales: Neukirchen, Daniel, Engelhardt, Nils, Krause, Miguel, Posch, Peter N.
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Elsevier Inc. 2022
Materias:
Article
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8733966/
https://www.ncbi.nlm.nih.gov/pubmed/35013672
http://dx.doi.org/10.1016/j.frl.2021.102037
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author Neukirchen, Daniel
Engelhardt, Nils
Krause, Miguel
Posch, Peter N.
author_facet Neukirchen, Daniel
Engelhardt, Nils
Krause, Miguel
Posch, Peter N.
author_sort Neukirchen, Daniel
collection PubMed
description We investigate the relationship between firm efficiency and stock returns during the COVID-19 pandemic. We find that highly efficient firms experienced at least 9.44 percentage points higher cumulative returns during the market collapse. A long-short portfolio consisting of efficient and inefficient firms would have also yielded a significantly positive weekly return of 3.53% on average. Overall, our results show that firm efficiency has significant explanatory power for stock returns during the crisis period.
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spelling pubmed-87339662022-01-06 Firm efficiency and stock returns during the COVID-19 crisis Neukirchen, Daniel Engelhardt, Nils Krause, Miguel Posch, Peter N. Financ Res Lett Article We investigate the relationship between firm efficiency and stock returns during the COVID-19 pandemic. We find that highly efficient firms experienced at least 9.44 percentage points higher cumulative returns during the market collapse. A long-short portfolio consisting of efficient and inefficient firms would have also yielded a significantly positive weekly return of 3.53% on average. Overall, our results show that firm efficiency has significant explanatory power for stock returns during the crisis period. Elsevier Inc. 2022-01 2021-03-31 /pmc/articles/PMC8733966/ /pubmed/35013672 http://dx.doi.org/10.1016/j.frl.2021.102037 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
Neukirchen, Daniel
Engelhardt, Nils
Krause, Miguel
Posch, Peter N.
Firm efficiency and stock returns during the COVID-19 crisis
title Firm efficiency and stock returns during the COVID-19 crisis
title_full Firm efficiency and stock returns during the COVID-19 crisis
title_fullStr Firm efficiency and stock returns during the COVID-19 crisis
title_full_unstemmed Firm efficiency and stock returns during the COVID-19 crisis
title_short Firm efficiency and stock returns during the COVID-19 crisis
title_sort firm efficiency and stock returns during the covid-19 crisis
topic Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8733966/
https://www.ncbi.nlm.nih.gov/pubmed/35013672
http://dx.doi.org/10.1016/j.frl.2021.102037
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