Impact of COVID-19 on stock price crash risk: Evidence from Chinese energy firms

Shoujun Huang and Hezhe Liu

Energy Economics, 2021, vol. 101, issue C

Abstract: This paper studies the impact of the outbreak of coronavirus disease 2019 (COVID-19) on the stock price crash risk of energy firms in China. We find that the stock price crash risk of energy firms significantly decreases in the post-COVID-19 period. We also find that firms that engage in more corporate social responsibility (CSR) activities are less exposed to stock price crash risk in the post-COVID-19 period than those that engage in less CSR activities. Finally, we show that the effect of COVID-19 on stock price crash risk is less severe for state-owned enterprises (SOEs) than for non-SOEs in the post-COVID-19 period. Our findings demonstrate China's economic recovery in the post-COVID-19 period and have policy implications for firms to improve their resilience to exogenous shocks.

Keywords: Stock price crash risk; COVID-19; Corporate social responsibility; SOEs (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (46)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:101:y:2021:i:c:s0140988321003248

DOI: 10.1016/j.eneco.2021.105431

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