 The Effect of Firms' Information Exposure on Safeguarding Employee Health: Evidence from COVID‐19Lisa Yao Liu and Shirley Lu Journal of Accounting Research, 2023, vol. 61, issue 3, 891-933 Abstract: We show that information exposure through international business networks enables firms to take proactive measures that benefit employees and potentially the local community. Specifically, in the early days of COVID‐19, firms that have business networks with China and Italy are more likely to be aware of the severity of the disease, and proactively implement work‐from‐home (“WFH”) policies that can protect their employees. Using Safegraph foot traffic data, we find a higher stay‐at‐home ratio before local governments impose lockdowns in zip codes where firms have a larger information exposure. These areas are also associated with a lower spread of COVID‐19. Our main findings are more pronounced when local governments face constraints in quickly responding to COVID‐19 and when firms have a higher WFH capability or have more investors with socially responsible preferences. Collectively, we present evidence on the role of private corporations in mitigating the negative effects of a public health crisis before government intervention. Date: 2023 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:bla:joares:v:61:y:2023:i:3:p:891-933 Ordering information: This journal article can be ordered from Access Statistics for this article Journal of Accounting Research is currently edited by Philip G. Berger, Luzi Hail, Christian Leuz, Haresh Sapra, Douglas J. Skinner, Rodrigo Verdi and Regina Wittenberg Moerman More articles in Journal of Accounting Research from Wiley Blackwell |
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