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
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author Au Yong, Hue Hwa
Laing, Elaine
author_facet Au Yong, Hue Hwa
Laing, Elaine
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collection PubMed
description 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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spelling pubmed-97597502022-12-19 Stock market reaction to COVID-19: Evidence from U.S. Firms’ International exposure Au Yong, Hue Hwa Laing, Elaine Int Rev Financ Anal Article 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. Published by Elsevier Inc. 2021-07 2020-12-15 /pmc/articles/PMC9759750/ /pubmed/36569818 http://dx.doi.org/10.1016/j.irfa.2020.101656 Text en Crown Copyright © 2021 Published by Elsevier Inc. 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
Au Yong, Hue Hwa
Laing, Elaine
Stock market reaction to COVID-19: Evidence from U.S. Firms’ International exposure
title Stock market reaction to COVID-19: Evidence from U.S. Firms’ International exposure
title_full Stock market reaction to COVID-19: Evidence from U.S. Firms’ International exposure
title_fullStr Stock market reaction to COVID-19: Evidence from U.S. Firms’ International exposure
title_full_unstemmed Stock market reaction to COVID-19: Evidence from U.S. Firms’ International exposure
title_short Stock market reaction to COVID-19: Evidence from U.S. Firms’ International exposure
title_sort stock market reaction to covid-19: evidence from u.s. firms’ international exposure
topic Article
url 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
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