Cui bono? Large-scale evidence on the impact of COVID-19 policy measures on listed firms

Michael Haimann, Christoph Kaserer and Kristian Ljubicic

The Quarterly Review of Economics and Finance, 2023, vol. 89, issue C, 228-243

Abstract: By using a large international firm-level data set this paper aims to make a contribution in better understanding how COVID-19 related stringency and economic support measures actually affected the corporate sector. Our most important findings can be summarized as follows: First, we find robust evidence that stringency measures had a statistically and economically significant positive impact on listed firms. Second, with respect to the effects of economic support measures the evidence seems, at best, to be weakly in favor of a positive impact. Third, small and employment intensive companies profited most from economic support measures. Fourth, also highly leveraged or even Zombie firms profited more from these support measures than others. Overall, the results are in line with official policies aimed at sheltering SMEs and human capital intensive firms from the Corona shock waves. However, it also seems that governments unintentionally supported firms in financial difficulties or with non-viable business models already before the pandemic.

Keywords: Coronavirus; COVID-19; Economic support measures; Employment intensity; Financial markets; Government support; Pandemic; SARS-CoV-2; Stringency measures; Zombie firms (search for similar items in EconPapers)
JEL-codes: G00 G01 G15 G18 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:quaeco:v:89:y:2023:i:c:p:228-243

DOI: 10.1016/j.qref.2023.04.002

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