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

Xiaowei Kong, Yifan Jin, Lihua Liu and Jialu Xu

Finance Research Letters, 2023, vol. 52, issue C

Abstract: 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.

Keywords: COVID-19; Sentiment; Stock price crash risk; China (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:52:y:2023:i:c:s1544612322007383

DOI: 10.1016/j.frl.2022.103562

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