Firms' exposures on COVID-19 and stock price crash risk: Evidence from China

This study examines the impact of firms’ exposures on COVID-19 sentiment on the stock price crash risk. We show the exposure on COVID-19 sentiment related to the medical, travelling and uncertain aspects significantly increases the stock price crash risk, while the exposure on COVID-19 sentiment rel...

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Detalles Bibliográficos
Autores principales: Kong, Xiaowei, Jin, Yifan, Liu, Lihua, Xu, Jialu
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Elsevier Inc. 2023
Materias:
Article
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9714181/
https://www.ncbi.nlm.nih.gov/pubmed/36471778
http://dx.doi.org/10.1016/j.frl.2022.103562
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author Kong, Xiaowei
Jin, Yifan
Liu, Lihua
Xu, Jialu
author_facet Kong, Xiaowei
Jin, Yifan
Liu, Lihua
Xu, Jialu
author_sort Kong, Xiaowei
collection PubMed
description This study examines the impact of firms’ exposures on COVID-19 sentiment on the stock price crash risk. We show the exposure on COVID-19 sentiment related to the medical, travelling and uncertain aspects significantly increases the stock price crash risk, while the exposure on COVID-19 sentiment related to vaccines significantly decreases the risk of stock price crash. Furthermore, our findings are stronger for non-state-owned firms and firms with low information transparency. Overall, we provide timely policy implication for economic impacts of the COVID-19 on the stock market.
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spelling pubmed-97141812022-12-01 Firms' exposures on COVID-19 and stock price crash risk: Evidence from China Kong, Xiaowei Jin, Yifan Liu, Lihua Xu, Jialu Financ Res Lett Article This study examines the impact of firms’ exposures on COVID-19 sentiment on the stock price crash risk. We show the exposure on COVID-19 sentiment related to the medical, travelling and uncertain aspects significantly increases the stock price crash risk, while the exposure on COVID-19 sentiment related to vaccines significantly decreases the risk of stock price crash. Furthermore, our findings are stronger for non-state-owned firms and firms with low information transparency. Overall, we provide timely policy implication for economic impacts of the COVID-19 on the stock market. Elsevier Inc. 2023-03 2022-12-01 /pmc/articles/PMC9714181/ /pubmed/36471778 http://dx.doi.org/10.1016/j.frl.2022.103562 Text en © 2022 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
Kong, Xiaowei
Jin, Yifan
Liu, Lihua
Xu, Jialu
Firms' exposures on COVID-19 and stock price crash risk: Evidence from China
title Firms' exposures on COVID-19 and stock price crash risk: Evidence from China
title_full Firms' exposures on COVID-19 and stock price crash risk: Evidence from China
title_fullStr Firms' exposures on COVID-19 and stock price crash risk: Evidence from China
title_full_unstemmed Firms' exposures on COVID-19 and stock price crash risk: Evidence from China
title_short Firms' exposures on COVID-19 and stock price crash risk: Evidence from China
title_sort firms' exposures on covid-19 and stock price crash risk: evidence from china
topic Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9714181/
https://www.ncbi.nlm.nih.gov/pubmed/36471778
http://dx.doi.org/10.1016/j.frl.2022.103562
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AT liulihua firmsexposuresoncovid19andstockpricecrashriskevidencefromchina
AT xujialu firmsexposuresoncovid19andstockpricecrashriskevidencefromchina

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