Does sustainable competitive advantage make a difference in stock performance during the Covid-19 pandemic?

Huaibing Yu

Finance Research Letters, 2022, vol. 48, issue C

Abstract: Although firms with sustainable competitive advantage do not yield superior returns in regular years, these firms significantly outperform others during the Covid-19 pandemic. Empirical evidence shows that wide-moat is positively priced by the stock market during the pandemic, which is not the case in the pre-pandemic period. Furthermore, wide-moat firms can generate positive cumulative abnormal returns after the advent of the Covid-19 pandemic. However, the magnitude wanes down as time expands into the future.

Keywords: Sustainable competitive advantage; Stock returns; Covid-19 pandemic (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:48:y:2022:i:c:s1544612322001751

DOI: 10.1016/j.frl.2022.102893

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