Pandemics, intermediate goods, and corporate valuation

Luc Laeven

Journal of International Money and Finance, 2022, vol. 120, issue C

Abstract: We evaluate whether the changes in valuation of U.S. corporates during the first wave of the COVID-19 pandemic depend on their downstream or upstream industries’ exposure to social distancing. Using a new dataset on sectoral dependence on the use and sale of intermediate goods, we find that firms whose downstream sectors are more affected by social distancing suffer from a greater decline in stock prices during the first quarter of 2020. Such an effect is mitigated for large firms.

Keywords: Valuation; Liquidity; Cash; Intermediate goods; Pandemic (search for similar items in EconPapers)
JEL-codes: D22 D57 G01 G32 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (5)

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Working Paper: Pandemics, Intermediate Goods, and Corporate Valuation (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jimfin:v:120:y:2022:i:c:s026156062100156x

DOI: 10.1016/j.jimonfin.2021.102505

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