Stock market reaction to COVID-19: Evidence from U.S. Firms’ International exposure

We examine the U.S. stock market reaction to the World Health Organization's announcement declaring COVID-19 a global health emergency, with a focus on firms' international exposure. We find that while international exposure through foreign sales, foreign assets, imports and exports are si...

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Detalles Bibliográficos
Autores principales: Au Yong, Hue Hwa, Laing, Elaine
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Published by Elsevier Inc. 2021
Materias:
Article
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9759750/
https://www.ncbi.nlm.nih.gov/pubmed/36569818
http://dx.doi.org/10.1016/j.irfa.2020.101656
Descripción
Sumario:We examine the U.S. stock market reaction to the World Health Organization's announcement declaring COVID-19 a global health emergency, with a focus on firms' international exposure. We find that while international exposure through foreign sales, foreign assets, imports and exports are significant and negatively associated with standardized cumulative abnormal returns in the short-run, the effect reverses in the long-run. In the long-run, internationalization contributes to multinational firms being more resilient to economic shocks caused by COVID-19.

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